Platts now offering prices on DDGS

By Aerin Curtis

- Last updated on GMT

Platts now offering prices on DDGS

Related tags: Ddgs

Platts is expanding its energy and commodities information to include price assessments for dried distillers’ grains with solubles (DDGS).

The company has previously provided information on the energy and oil industries, including coverage of ethanol, said Tim Worledge, editorial director for pricing at Platts.

DDGS are a by-product from that industry and are increasingly used as a component of animal feed both in the US and internationally.

About 11m tons of DDGS were exported from the US in 2014, company officials added.

“For us that’s an interesting area, and it complements something that we’re already doing,”​ Worledge told FeedNavigator.

The goal of the work is to provide useful information to industry producers, consumers, traders and brokers, he said. The company is hoping to offer the prices at a time when the new market may be developing.

The group has been investigating the topic for about a year, and has put together a team based in Huston, he said. “We’d like to think we can provide transparency to people within the industry,”​ he added.

“Based on the feedback we’ve had from the industry, we believe there are some constant requirements that enable us to capture prices, particularly those heading to areas like New Orleans,”​ said Worledge.

The prices currently offered looked at two specific areas and assessments include information regarding market trends and a rational for the prices, he said. But that may expand to cover more of the complete export market in the future.

Pricing details

The price assessments update regularly, and seek to capture the relationship between corn, ethanol and DDGS, said Worledge.

“While we’re focus on and around the US at the moment, we have conversations going on in Europe and in South America and [there is] big consumption in China,”​ he said. “A lot of people are waking up to this industry – how they trade, when they buy and what they buy.”

The assessments are based on DDGS that contain a minimum protein content of 25%, fat content of 6% and a moisture level of 10 to 12%, company officials said. The conditions also include a minimum color of 50, which is a measurement of nutrition after heating.

The assessments include:

  • “Platts DDGS FOB Chicago: the physical spot market value of DDGS free on board (FOB) as delivered by 25-short-ton truck or rail-head to Channahon, Illinois, for the following week delivery.”
  • “Platts DDGS CIF New Orleans: the physical spot market value of DDGS 1500-short tons cost, insurance and freight as delivered on a barge to New Orleans and having loaded any period over the front month.”​ 

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