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Market Matters Blog           09/18 13:17
Corn and Soybeans Face Strict Inspections Prior to Export
DDG Weekly Update: DDG Prices Steady
More Transportation Headaches Develop as Harvey Leaves but Irma Follows
Texas Cotton Farmers Try to Salvage What's Left of Crops after Harvey's Wrath
Propane Prices on the Rise?
DDG Prices Rise on Export Demand
Vietnam Lifts Suspension of US DDGS Imports
Harvey Responsible for Rail Embargoes, Texas Gulf Port Closures 
Transportation Board to CSX: Get Your Service Back on Track
DDG Prices Weaker

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Corn and Soybeans Face Strict Inspections Prior to Export

   The Federal Grain Inspection Service (FGIS) is the "watchdog" that ensures 
all grain loaded onto ships or rail to be exported out of the United States 
grades according to standards established by the United States Grain Standards 
Act (USGSA) and the Agricultural Marketing Act of 1946 (AMA).

   You already know that your grain is graded at the elevator when you deliver 
it, but from there, when your elevator ships it to an export facility, it is 
"officially" graded before the export facility dumps it. Then, it faces a 
mandatory inspection by FGIS as it is loaded out of the export facility before 
it leaves the country.

   The FGIS website said standards for quality assessments and weighing 
services is established through a network of federal, state and private 
entities. FGIS is under the governing arm of USDA Grain Inspection, Packers and 
Stockyards Administration (GIPSA). Recently, Secretary of Agriculture Sonny 
Perdue, decided to merge GIPSA with the Agricultural Marketing Service (AMS), 
which administers programs that create domestic and international marketing 
opportunities for U.S. producers. Currently, GIPSA and AMS both carry out 
grading activities and "work to ensure fair trade practices," according to the 
GIPSA website. Basically, the programs complement each other and combining them 
made perfect sense.

   In a news release on Sept. 7, 2017, NGFA President Randy Gordon and NAEGA 
President and Chief Executive Officer Gary Martin said, "Relocating FGIS within 
an agency that has a similar mission and function as a service agency is the 
foundation for its successful future, and we commend Secretary Perdue for 
recognizing this need and moving expeditiously to bring about this change."

   Recently, I attended a session about FGIS at the U.S. Soy Global Trade 
Exchange and Midwest Specialty Grains Conference in Omaha, Nebraska, in 
mid-August. Byron Reilly, Director FGIS, Departmental Initiatives and 
International Affairs gave a presentation on how the soy and grain inspection 
process works to participants from many of the 58 countries in attendance.

   Reilly opened the presentation by informing us of the role FGIS plays in the 
export market. "FGIS manages the national inspection system and provides the 
mandatory export inspection and weighing," said Reilly. "They help move our 
nation's harvest into the marketplace by providing farmers, handlers, 
processors, exporters, and international buyers with sampling, inspection, 
process verification, weighing and stowage examination services that accurately 
and consistently describe the quality and quantity of the commodities being 
bought and sold." 

   One of the things Reilly mentioned is that FGIS is required to test all corn 
leaving the country for aflatoxin, unless the contract stipulates testing is 
not required and both buyer and seller agree to waive requirements. FGIS has 
the ability to test for all other toxins at the request of the shipper, but it 
is not mandatory as the aflatoxin test is.

   There are some things that FGIS does not do, added Reilly. FGIS does not 
market grain, mandate quality, set grain prices, test for GMOs or arbitrate 
disputes between the parties involved in the export shipments. 

   Reilly noted that FGIS/GIPSA retains official file samples drawn at the time 
of the original inspection for 90 days after loading. When an importer reports 
a discrepancy within that period, samples are sent to their Technology and 
Science Division (TSD) laboratory for analysis. The field office sends all 
pertinent documents regarding the shipment to GIPSA for review.

   On the GIPSA website it states they analyze data provided from destination, 
then prepare a report of findings from all available information. The purpose 
of the review is to verify whether the original quality inspection and 
certification were in fact correct, and to determine, insofar as possible, what 
factors may have contributed to a discrepancy in results at destination. "GIPSA 
does not issue new certificates based on the review, nor is the review intended 
to replace provisions for claims or arbitration in the contract between the 
importer and supplier," noted Reilly.

   Thanks to the strict grading standards set by USGSA and the AMA, the U.S. is 
able to retain its reputation of exporting the highest quality of grain. That 
reputation in turn creates demand and allows competitive markets where farmers 
can sell their grain and oilseeds.

   Here is a link to the full FGIS/GIPSA presentation from the 2017 U.S. SOY 
Global Trade Exchange/Midwest Specialty Grains conference in Omaha; 
https://www.grainconference.org/2017-conference

   Here is a link to the USDA GIPSA website with more specific requirements for 
exporting grain and oilseeds: 
https://www.gipsa.usda.gov/fgis/exportinggrain.aspx

   Mary Kennedy can be reached at mary.kennedy@dtn.com 

   Follow Mary Kennedy on Twitter @MaryCKenn

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DDG Weekly Update: DDG Prices Steady

   OMAHA (DTN) -- The DTN average dried distillers grains (DDG) spot price from 
the 39 locations DTN collects bids from was $108 for the week ended Sept. 14, 
unchanged from one week ago.

   Based on the average of bids collected by DTN, the value of DDG relative to 
corn for the week ended Sept. 14 was at 88.48%, and the value of DDG relative 
to soybean meal was at 34.98%. The cost per unit of protein for DDG was $4.00, 
compared to the cost per unit of protein for soybean meal at $6.50.

   Merchandisers told me demand is starting to pick up in the domestic market 
as cooler weather arrives in the upper Midwest, causing feeders to use more 
product. Also, the market feels firm ahead of some of the plants taking fall 
maintenance downtimes.

   CIF NOLA (New Orleans, Louisiana) DDGS prices were firm with September at 
$143 to $150, and October at $143 to $150. Merchandisers noted that trade 
volume is increasing for shipments to Vietnam, with activity expected to pick 
up in October. The Coast Guard reopened the Port of Savannah Tuesday, Sept. 12 
with no restrictions after closing ahead of the arrival of Irma. Container 
shipments were able to resume as the port was fortunate enough to not have 
extensive damage from the storm, but captains were cautioned to watch for any 
hazards that may surface in the water.

   U.S. Grains Council (USGC) noted in a press release Sept. 13 that members of 
the 2017 Taiwan Agricultural Goodwill Mission pledged to purchase 5 million 
metric tons (197 million bushels) of U.S. corn and 500,000 tons of U.S. DDGS 
between 2018 and 2019. The commitment was made during a signing ceremony at the 
U.S. Capitol in Washington, D.C., on Wednesday.

   According to the USGC Sept. 14 weekly newsletter, the U.S. accounts for 95% 
of the DDGS imported by Taiwan. Almost all large feed mills in Taiwan currently 
utilize DDGS, but typically at extremely conservative inclusion rates. "As a 
result, the council is working with local nutritionists to better formulate 
diets to optimize caloric and nutritional efficiency using U.S. DDGS. Taiwan 
purchased nearly 240,000 tons of U.S. DDGS thus far in the 2016-17 marketing 
year, a 23% increase year-over-year."


                               CURRENT     PREVIOUS     CHANGE
COMPANY   STATE                           9/14/2017    9/7/2017
Bartlett and Company, Kansas City, MO (816-753-6300)
          Missouri           Dry             $122        $120     $2
                             Modified        $60          $60     $0
CHS, Minneapolis, MN (800-769-1066)
          Illinois           Dry             $115        $115     $0
          Indiana            Dry             $113        $113     $0
          Iowa               Dry             $110        $110     $0
          Michigan           Dry             $103        $103     $0
          Minnesota          Dry             $110        $110     $0
          North Dakota       Dry             $110        $110     $0
          New York           Dry             $115        $120     -$5
          South Dakota       Dry             $108        $108     $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
          Kansas             Dry             $108        $105     $3
POET Nutrition, Sioux Falls, SD (888-327-8799)
          Indiana            Dry             $108        $108     $0
          Iowa               Dry             $105        $105     $0
          Michigan           Dry             $108        $108     $0
          Minnesota          Dry             $105        $105     $0
          Missouri           Dry             $115        $115     $0
          Ohio               Dry             $108        $108     $0
          South Dakota       Dry             $105        $105     $0
    `             `
United BioEnergy, Wichita, KS (316-616-3521)
          Kansas             Dry             $118        $118     $0
                             Wet             $50          $50     $0
          Illinois           Dry             $127        $127     $0
          Nebraska           Dry             $118        $118     $0
                             Wet             $50          $50     $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
          Illinois           Dry             $111        $110     $1
          Indiana            Dry             $105        $103     $2
          Iowa               Dry             $105        $103     $2
          Michigan           Dry             $105        $100     $5
          Minnesota          Dry             $105        $100     $5
          Nebraska           Dry             $105        $102     $3
          New York           Dry             $120        $120     $0
          North Dakota       Dry             $105        $100     $5
          Ohio               Dry             $110        $105     $5
          South Dakota       Dry             $105        $100     $5
          Wisconsin          Dry             $105        $105     $0
Valero Energy Corp., San Antonio, TX (402-932-5901)
          Indiana            Dry             $110        $110     $0
          Iowa               Dry             $100        $108     -$8
          Minnesota          Dry             $100        $105     -$5
          Nebraska           Dry             $105        $105     $0
          Ohio               Dry             $110        $110     $0
          South Dakota       Dry             $95         $100     -$5
          California                         $165        $170     -$5
Western Milling, Goshen, California (559-302-1074)
          California         Dry             $180        $180     $0
*Prices listed per ton.
          Weekly Average                     $108        $108     $0
The weekly average prices above reflect only those companies DTN
collects spot prices from. States include: Missouri, Iowa, Nebraska,
Kansas, Illinois, Minnesota, North Dakota, South Dakota, Michigan,
Wisconsin and Indiana. Prices for Pennsylvania, New York and
California are not included in the averages.

             VALUE OF DDG VS. CORN & SOYBEAN MEAL
               Settlement Price: Quote Date   Bushel Short Ton
                            Corn   9/14/2017 $3.4175   $122.05
                    Soybean Meal   9/14/2017 $308.70
   DDG Weekly Average Spot Price     $108.00
                      DDG Value Relative to:  9/14      9/7
                                        Corn  88.48%    88.48%
                                Soybean Meal  34.98%    35.71%
                   Cost Per Unit of Protein:
                                         DDG   $4.00     $4.00
                                Soybean Meal   $6.50     $6.37
Notes:
Corn and soybean prices take from DTN Market Quotes. DDG price
represents the average spot price from Midwest companies
collected on Thursday afternoons. Soybean meal cost per unit
of protein is cost per ton divided by 47.5. DDG cost per unit
of protein is cost per ton divided by 27.

   Mary Kennedy can be reached at mary.kennedy@dtn.com

   Follow her on Twitter @MaryCKenn

    

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More Transportation Headaches Develop as Harvey Leaves but Irma Follows

   As cleanup was just beginning from the damage left behind by Hurricane 
Harvey, a second hurricane named Irma roared across Florida and into Georgia. 
Irma created more transportation woes, in addition to the devastation of 
people's homes and businesses.

   On Sept. 10, Category 4 Hurricane Irma made landfall on the U.S with maximum 
sustained winds of 130 mph. It weakened through the day as it made its way up 
Florida, but its impact was felt far from the path of the tropical cyclone's 
center. 

   As of Sept. 12, government officials said there were 15 million people in 
Florida and Georgia without power. In Jacksonville, Florida, 400 miles north of 
where Irma first hit, a record storm surge hit on Monday, closing down bridges 
and roadways.

   The Port of Savannah in Georgia was to be closed at least through Sept. 12, 
according to the Georgia Ports Authority. This port accounts for nearly a third 
of U.S. poultry exports along with other agriculture commodities including DDGS 
and is the fourth-busiest container port in the country. The Port of Charleston 
in South Carolina halted operations Monday, but reopened along with all other 
terminals and facilities Tuesday with no restrictions. The Port of Tampa Bay 
reopened the port with restrictions the afternoon of Sept. 12.

   Jacksonville International Airport and Tampa International Airport resumed 
operations Tuesday, but there was only limited service to Miami International 
Airport, Fort Lauderdale-Hollywood International Airport and Orlando 
International Airport. As for railroads serving the areas hit by Irma, they are 
still assessing the damage to tracks, bridges and crossings.

   On its website on Sept. 11, the CSX, based in Jacksonville, Florida, noted 
that "assessment and recovery efforts from the extensive impact of Hurricane 
Irma are underway."

   CSX went on to say, "Several areas remain without commercial power and 
continue to have flooding associated with storm surge and downed trees. CSX 
engineering crews are assessing the full impact on network infrastructure 
across affected regions where and when it is safe to do so. During this time, 
our main priorities are the safety of our employees and meeting the needs of 
our customers." https://www.csx.com/index.cfm/customers/news/service-bulletins1/

   On Sept. 12, Norfolk Southern in a service alert on its website stated that 
"recovery efforts are underway to restore service to areas impacted by 
Hurricane Irma." Norfolk Southern is removing trees from the tracks and 
assessing overall track conditions. Routes are being restored to service as it 
is safe to do so, and it has started to meter in traffic accordingly. Regional 
flooding and power outages continue to affect the areas affected by the storm.

   A second service alert stated that, "Effective immediately the ingate is 
open for shipments originating at the Jacksonville Intermodal facility. To 
enhance velocity through the facility, drivers ingating shipments will be 
required to also outgate a shipment. Drivers should exercise caution when 
arriving and departing the Jacksonville facility as downed-trees, localized 
flooding, and malfunctioning crossing-arms have been reported."

   The company said effective 12:01 a.m., Sept. 13, "the embargo on shipments 
billed to Jacksonville, Savannah-Garden City, and all FEC destinations will be 
lifted."

   Norfolk Southern noted that it will work with customers "to identify 
switching needs and service plans as recovery progresses. Once service is 
restored to affected routes, customers should continue to expect delays of 48 
to 72 hours for traffic moving through and to all areas that have been impacted 
by the storm." http://www.nscorp.com/content/nscorp/en.html

   TEXAS PORTS REOPEN, RAILROADS FACE REPAIRS

   Port of Houston opened the Barbours Cut and Bayport terminals and 
Jacintoport on Sept. 1 and the Port Houston Container Terminals have been 
working with vessels to clear for transit. The upper part of the Houston Ship 
Channel, the area that connects the Port to the Gulf of Mexico, is still closed 
to ship and tow traffic because of a sunken dry dock, according to the Port's 
website.

   An alert on the Port Houston website stated that salvage operations continue 
and the sunken dock has not been moved yet. The alert said that U.S. Coast 
Guard and Houston Pilots will open the Houston Ship Channel to the City Docks 
at noon Sept. 13, limited to 90-foot beam and 33-foot draft. Here is a link to 
a Sept. 3 informational letter published by Port Houston: https://goo.gl/3xMPcF

   Export inspections for U.S. wheat going out of the Texas Gulf for the week 
ending Sept. 7 showed there has been some progress in Port activity as 
inspection numbers were higher than the dismal report showed during the week 
ending Aug. 31 when Harvey shut operations down.

   Following the six-day record closure, the Port of Corpus Christi reopened 
with restrictions on Aug. 31 and then became fully operational on Sept. 1. The 
Port of Brownsville was reopened on Aug. 31 with no restrictions. All Ports 
have reminded vessels to be on the lookout for any floating debris that may 
surface in the water.

   As far as rail service in Texas, the UP said, as of Sept. 7, the majority of 
service has been restored. At the height of the storm, 1,750 miles of track 
were out of service and 2,440 route miles were affected. As of Wednesday, just 
50 miles of track are out of service and 420 route miles have been affected. To 
give a sense of the magnitude of work performed, here is a link to a 
presentation that further highlights the UP Rail Impact and Service Recovery 
Efforts: https://goo.gl/YJA5Dw.

   On Sept. 7, the BNSF reported that service was restored on all of its 
subdivisions affected by Tropical Storm Harvey in southeastern Texas. "Trains 
were moving again on our entire Longview Subdivision yesterday morning and our 
Silsbee Subdivision, between Beaumont and Silsbee, Texas, returned to service 
last night. The primary rail line connecting Beaumont and locations in 
Louisiana has also re-opened to traffic."

   However, while service has been restored on nearly all affected rail lines, 
the BNSF said track and signal work continues in some locations. "Trains may 
experience delays during scheduled maintenance windows, and customers should 
expect extended transit times in the region until operations by BNSF and other 
rail carriers have fully normalized. We also continue to re-route some traffic 
around areas where service restoration efforts are ongoing, specifically 
locations along the Gulf Coast southwest of Houston."

   According to the most recent service announcement, most embargoes put in 
place by BNSF and connecting railroads have been lifted; however, some remain 
active for shipments destined to/originating from, or passing through, 
locations in the region. BNSF is issuing permits allowing shipments on a 
case-by-case basis. The BNSF also reminded shippers to communicate with 
receivers in the Gulf Coast region to ensure they are operational before 
sending shipments.

   Mary Kennedy can be reached at mary.kennedy@dtn.com 

   Follow Mary Kennedy on Twitter @MaryCKenn

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Texas Cotton Farmers Try to Salvage What's Left of Crops after Harvey's Wrath

   Many cotton farmers in eastern and southern Texas were anticipating a strong 
crop this year, only to see their hopes washed away by Hurricane Harvey. Now 
they're trying to salvage what's left of their crops. 

   After coming ashore in Texas on the night of Friday, Aug. 25, Harvey became 
the strongest hurricane to hit the U.S. in more than a decade. Residents of 
Texas in the path of the storm were told to evacuate due to the catastrophic 
flooding that was expected. In Bay City, Texas, (in Matagorda County) a 
mandatory evacuation was ordered on Sunday, Aug. 27, "due to the severe 
flooding of every structure in Bay City." 

   Bay City resident Robby Reed told me that, on his farm, he lost more than 
400 of his 725 acres of cotton, worth an estimated half-million dollars. He 
told me that his crop insurance was not going to help because he had already 
met his guarantee yield with cotton he harvested prior to Harvey. "This was my 
best cotton crop year ever before the hurricane hit," said Reed. 

   Reed farms a total of 2,500 acres of land, which includes cotton, rice, 
milo, corn and sometimes soybeans. Once the rains came, the fields that Reed 
had not harvested were at the mercy of the storm, which damaged what was once a 
bumper crop. While most of the corn had been harvested prior to the storm, only 
about 70% of the cotton in Matagorda County had been harvested. 

   I spoke to Reed on Sept. 6 while he was attempting to pick the cotton that 
was left standing. He told me that his home was filled with 4 feet of water, 
and while he did have flood insurance, he was still left with a "big mess." 

   I mentioned that I was hearing cotton was being condemned in the field. Reed 
said, "There was a rumor about the cotton, more about the seed rather than the 
lint." (Cotton lint is the fiber taken from the seed after it has been ginned.) 

   "If the cotton can go through the gin, it can be ginned. A lot of the seed 
in the cotton that has not been picked (before Harvey) has sprouted or rotted. 
The cotton seed is used for a bunch of different things (feed, oil, meal, oil, 
to name a few), and it usually pays for my cost of ginning. So, it's going to 
cost more to have it ginned without having good seed." 

   Harvey destroyed everything in its path either from hurricane-force winds 
and/or record flooding that covered Houston and surrounding communities. 
Farmers lost harvested bales of cotton that were blown apart by the winds, 
along with cotton and other crops still sitting unharvested that were flooded 
by the rains.

   TEXAS FARM BUREAU: TOO SOON TO KNOW FULL EXTENT OF LOSSES

   Gene Hall, director of public relations at the Texas Farm Bureau (TFB) told 
me that, "Agri-Life Extension released a preliminary estimate last week. They 
stated that the loss for cotton in the hurricane zone could be as much as 
400,000 bales -- a devastating blow. Crop insurance will not cover all of that. 
The Corpus Christi classing office had projected the Gulf Coast cotton crop at 
2 million bales. That would have been one of the best in recent years."

   That's bittersweet for cotton farmers who have seen a tough couple of years, 
according to Hall. "Prices have been low and costs high. Many farmers were 
counting on the high yields from this crop. For some, it may mean going out of 
the cotton business. Difficult decisions are ahead."

   "Everything left on the stalk has to be considered a near-total loss," said 
Hall. "Since harvest was still underway, we know that many cotton modules -- 
large packages of unprocessed cotton waiting for ginning - were left in the 
field or in gin yards. They are typically covered by a tarp, waiting for the 
gin to be ready for them. We know many modules had those tarps blow off and the 
modules ruined by wind and rain. It's unlikely that much will be salvaged."

   Hall said that 98% of the crop had been harvested near Corpus Christi. Less 
of the harvest was complete as you move north in the disaster area. Matagorda 
County was probably only about 70% complete, and Wharton County was maybe less 
than 40%. "It will likely be weeks before we have any reliable estimates as to 
actual losses," he added. 

   "Our field staff in the area tell me that most ranchers got their livestock 
moved before (Harvey made) landfall," said Hall. "The only nice thing about a 
hurricane is you know it is coming. But since the storm was unprecedented, we 
know that some of them were caught by surprise. There have been cattle lost and 
still stranded. Some have been moved. Impossible to know how many at this 
point."

   Hall also told me that the rice situation is "bad enough," though not as 
severe as cotton. "I was told by a member of our rice committee that there was 
about 10% to 20% of first-crop rice left in the field around Beaumont. Some may 
be salvaged, but not if the mature heads were submerged. I think it's real 
dicey to predict how it will affect second-crop rice."

   "Farmers and ranchers have lost homes like their neighbors. Many of them 
have also seen their livelihood severely impacted," said Hall. "TFB has 
launched the Hurricane Harvey Relief Fund for Agriculture, focusing on the 
damages suffered by the farm and ranch families damaged by Hurricane Harvey."

   Here are a few links for how to help farmers and ranchers in Texas: 

   Texas Farm Bureau: 
http://texasfarmbureau.org/texas-farm-bureau-hurricane-harvey-relief-effort/ 

   The Agriculture Department of Texas also accepts donations of hay and animal 
feed. Find more information here 
https://www.texasagriculture.gov/Home/ProductionAgriculture/HayHotline or call 
512-463-9360.

   Mary Kennedy can be reached at mary.kennedy@dtn.com  

   Follow Mary Kennedy on Twitter @MaryCKenn

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Propane Prices on the Rise?

   On Aug. 24, I wrote an article detailing the propane outlook for the fall 
crop drying/winter heating season. The story was posted right before Hurricane 
Harvey pummeled the area around Houston. (http://bit.ly/2vKZISf).

   At the time, the outlook was that with a normal-sized crop to dry, prices 
shouldn't climb too much because supply should be adequate. This was despite 
some analysts having "some concerns" about more propane supplies heading into 
the global export market.

   I did add in the story that a major hurricane could affect propane prices, 
because Houston is major player in energy markets.

   Now, fast forward a couple weeks: Hurricane Irma is bearing down and 
forecast to strike Florida hard over the weekend.

   What effect, if any, are these major tropical storms having on the propane 
market?

   From talking to DTN analyst Todd Hultman right after Hurricane Harvey, it 
didn't yet appear to have any affect. Propane prices were not moving much, up a 
few cents on the U.S. rack average but nothing major, he pointed out to me.

   This week, in the days leading up to Hurricane Irma, we check again on 
propane prices and it finally does appear these storms may be having an effect 
on the propane price. 

   The U.S. rack average was at 88.6 cents/gallon on Friday, up 00.56 from 
Thursday. While this may not seem like a large increase, it was the highest 
price since last Feb., Hultman said.

   These rising prices may affect farmers deciding to book propane for their 
needs this fall and winter. However, in a continuing DTN poll, maybe the answer 
is not as obvious as it might seem.  

   On our website, we asked the following poll question: "As spring-planted 
crops progress, some farmers will be thinking about their propane needs for 
upcoming crop drying and heating. What is your plan for propane this fall?"

   While the poll is incomplete, since people are still voting on it, a look at 
the results as of noon Friday showed an overwhelming number of respondents -- 
49% -- said they were not going to book propane at all.

   "Will book propane in August" was the second highest response with 40% 
selecting this choice. "Will book propane in September" was next, at 9%, while 
"Will book propane in October" had 1%. 

   It would be interesting to know if these hurricanes changed some farmers' 
minds about booking propane. According to the results of this unscientific 
poll, maybe not. If prices keep rising, maybe they'll think twice.

   Russ Quinn can be reached at russ.quinn@dtn.com

   Follow Russ Quinn on Twitter @russquinnDTN

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DDG Prices Rise on Export Demand

   OMAHA (DTN) -- CIF NOLA (New Orleans, Louisiana) DDGS prices were stronger 
from one week ago, with September at $144 to $148, and October through December 
at $144 to $150. The market is firming since the announcement last Friday that 
Vietnam will accept imports of U.S. DDGS once again. 

   The Plant Protection Department of Vietnam (PPD) noted in their announcement 
of resumption of U.S. DDGS imports, that phosphine will be acceptable for 
treatment of DDGS, corn and wheat from the U.S prior to exporting the product 
to Vietnam. In a letter sent to APHIS and industry leaders, PPD Director 
General Hoang Trung said the phytosanitary certificate needed to include date, 
location of the fumigation, fumigant, duration and temperature of treatment. 

   "However, if any interception of living quarantine pest of Vietnam, PPD will 
apply the phytosanitary measures according to our regulation," concluded Trung. 
Here is a link to the requirements for U.S. DDGS, corn and wheat for export to 
Vietnam: http://www.dtn.com/ag/assets/2017.09.01.Attachment.pdf

   A merchandiser told me most of the demand for DDGS is for containers vs. 
bulk shipments and the Vietnam news came at just the right time. Plants had 
been building supplies because they were running at a faster pace due to good 
margins and with fresh demand coming from Vietnam it will help alleviate any 
plants burdened with product. Another merchandiser noted that there will be 
delays at the Port in Savannah, Georgia, where some DDGS containers are shipped 
from, because it will be shut down this weekend due to Hurricane Irma.

   The DTN average dried distillers grains (DDG) spot price from the 39 
locations DTN collects bids from was $108 for the week ended Sept. 7, 2 cents 
higher on average from one week ago.

   Based on the average of bids collected by DTN, the value of DDG relative to 
corn for the week ended Sept. 7 was at 88.48%, and the value of DDG relative to 
soybean meal was at 35.71%. The cost per unit of protein for DDG was $4.00, 
compared to the cost per unit of protein for soybean meal at $6.37.


                               CURRENT    PREVIOUS    CHANGE
COMPANY   STATE                           9/7/2017   8/31/017
Bartlett and Company, Kansas City, MO (816-753-6300)
          Missouri            Dry           $120       $120     $0
                              Modified      $60        $60      $0
CHS, Minneapolis, MN (800-769-1066)
          Illinois            Dry           $115       $115     $0
          Indiana             Dry           $113       $110     $3
          Iowa                Dry           $110       $105     $5
          Michigan            Dry           $103       $100     $3
          Minnesota           Dry           $110       $103     $7
          North Dakota        Dry           $110       $110     $0
          New York            Dry           $120       $120     $0
          South Dakota        Dry           $108       $105     $3
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
          Kansas              Dry           $105       $105     $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
          Indiana             Dry           $108       $108     $0
          Iowa                Dry           $105       $105     $0
          Michigan            Dry           $108       $105     $3
          Minnesota           Dry           $105       $105     $0
          Missouri            Dry           $115       $112     $3
          Ohio                Dry           $108       $108     $0
          South Dakota        Dry           $105       $100     $5
    `              `
United BioEnergy, Wichita, KS (316-616-3521)
          Kansas              Dry           $118       $114     $4
                              Wet           $50        $45      $5
          Illinois            Dry           $127       $122     $5
          Nebraska            Dry           $118       $114     $4
                              Wet           $50        $45      $5
U.S. Commodities, Minneapolis, MN (888-293-1640)
          Illinois            Dry           $110       $110     $0
          Indiana             Dry           $103       $103     $0
          Iowa                Dry           $103       $103     $0
          Michigan            Dry           $100       $100     $0
          Minnesota           Dry           $100       $100     $0
          Nebraska            Dry           $102       $102     $0
          New York            Dry           $120       $120     $0
          North Dakota        Dry           $100       $100     $0
          Ohio                Dry           $105       $105     $0
          South Dakota        Dry           $100       $100     $0
          Wisconsin           Dry           $105       $105     $0
Valero Energy Corp., San Antonio, TX (402-932-5901)
          Indiana             Dry           $110       $105     $5
          Iowa                Dry           $108       $105     $3
          Minnesota           Dry           $105       $105     $0
          Nebraska            Dry           $105       $108     -$3
          Ohio                Dry           $110       $110     $0
          South Dakota        Dry           $100       $95      $5
          California                        $170       $172     -$2
Western Milling, Goshen, California (559-302-1074)
          California          Dry           $180       $176     $4
*Prices listed per ton.
          Weekly Average                    $108       $106     $2
The weekly average prices above reflect only those companies DTN
collects spot prices from. States include: Missouri, Iowa, Nebraska,
Kansas, Illinois, Minnesota, North Dakota, South Dakota, Michigan,
Wisconsin and Indiana. Prices for Pennsylvania, New York and
California are not included in the averages.

             VALUE OF DDG VS. CORN & SOYBEAN MEAL
               Settlement Price: Quote Date   Bushel Short Ton
                            Corn    9/7/2017 $3.4175   $122.05
                    Soybean Meal    9/7/2017 $302.40
   DDG Weekly Average Spot Price     $108.00
                      DDG Value Relative to:   9/7     8/31
                                        Corn  88.48%    86.72%
                                Soybean Meal  35.71%    36.01%
                   Cost Per Unit of Protein:
                                         DDG   $4.00     $3.93
                                Soybean Meal   $6.37     $6.20
Notes:
Corn and soybean prices take from DTN Market Quotes. DDG price
represents the average spot price from Midwest companies
collected on Thursday afternoons. Soybean meal cost per unit
of protein is cost per ton divided by 47.5. DDG cost per unit
of protein is cost per ton divided by 27.

   Mary Kennedy can be reached at mary.kennedy@dtn.com

   Follow her on Twitter @MaryCKenn

    

******************************************************************************
Vietnam Lifts Suspension of US DDGS Imports

   OMAHA (DTN) -- Vietnam will lift its suspension of U.S. distillers dried 
grains with solubles (DDGS) imports and ease fumigation requirements for U.S. 
corn and wheat imports, U.S. Grains Council President and CEO Tom Sleight told 
DTN on Friday. 

   In an official press release Friday, Sleight said, "We are very pleased to 
hear the news from Vietnam overnight that, as of today, import permits will be 
issued for U.S. DDGS and new phosphine fumigation protocols will be acceptable 
for shipments of U.S. corn, DDGS and wheat." 

   "Since the suspension on imports was put in place late last year, our staff 
has worked closely with industry and government both here in the United States 
and in Vietnam to find a resolution to this issue. This intense effort was 
strongly supported by the U.S. Department of Agriculture's (USDA's) leadership, 
officials in its Animal and Plant Health Inspection Service (APHIS) and the 
Office of the U.S. Trade Representative (USTR)," added Sleight.

   "While we never want to see a market closed to our products for any reason, 
this was an example of how to effectively and comprehensively tackle a 
scientific challenge impeding trade flows. It was also a reminder of the 
importance of strong trade policy. Vietnam is one of the fastest-growing feed 
markets in the world, and the disruptions and losses this issue caused 
reinforce the need for agreements that ensure open access and outline 
resolution processes for mutual concerns," he said.

   USGC thanked U.S. and Vietnam government officials and industries in both 
countries for their collaboration on resolving the issue.

   The news should help boost the U.S. DDG market, which has seen prices slump 
in the past few weeks. 

   The DTN average dried distillers grains (DDG) spot price from the 39 
locations DTN collects bids from was $106 for the week ended Aug. 31, 1 cent 
lower on average from one week ago.

   Based on the average of bids collected by DTN, the value of DDG relative to 
corn for the week ended Aug. 31 was at 86.72%, and the value of DDG relative to 
soybean meal was at 36.01%. The cost per unit of protein for DDG was $3.93, 
compared to the cost per unit of protein for soybean meal at $6.20.

   Merchandisers noted again that the California market is feeling weak. Truck 
markets elsewhere have been mostly steady, but there were a few changes this 
week. The cash corn price has been dropping most of the week, but did see some 
recovery on Thursday.

   CIF NOLA (New Orleans, Louisiana) DDGS prices weakened in the past week with 
August at $139 to $146, and September at $138 to $143. Barge movement slowed 
down after late July early August push, but if anything was trying to move the 
past week or next week, they will face slowdowns due to a major lock closure in 
the UMR.

   On Wednesday, the Mel Price lock was closed, delaying all shipments to and 
from the Upper Mississippi River and Illinois River. At this point, the USACE 
has not given an estimate on the length of the closure, but they have indicated 
this closure could be several days. On top of that, repairs at the LaGrange 
Lock on the Illinois River is causing delays in each direction due to work 
being performed on the lock chamber.


                                                 CURRENT     PREVIOUS    CHANGE
COMPANY     STATE                                8/31/017    8/24/017
Bartlett and Company, Kansas City, MO (816-753-6300)
            Missouri              Dry              $120        $120        $0
                                  Modified         $60          $60        $0
CHS, Minneapolis, MN (800-769-1066)
            Illinois              Dry              $115        $115        $0
            Indiana               Dry              $110        $110        $0
            Iowa                  Dry              $105        $110       -$5
            Michigan              Dry              $100        $105       -$5
            Minnesota             Dry              $103        $105       -$2
            North Dakota          Dry              $110        $115       -$5
            New York              Dry              $120        $120        $0
            South Dakota          Dry              $105        $105        $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
            Kansas                Dry              $105        $108       -$3
POET Nutrition, Sioux Falls, SD (888-327-8799)
            Indiana               Dry              $108        $108        $0
            Iowa                  Dry              $105        $108       -$3
            Michigan              Dry              $105        $105        $0
            Minnesota             Dry              $105        $108       -$3
            Missouri              Dry              $112        $120       -$8
            Ohio                  Dry              $108        $108        $0
            South Dakota          Dry              $100        $103       -$3
     `                `
United BioEnergy, Wichita, KS (316-616-3521)
            Kansas                Dry              $114        $114        $0
                                  Wet              $45          $45        $0
            Illinois              Dry              $122        $125       -$3
            Nebraska              Dry              $114        $114        $0
                                  Wet              $45          $45        $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
            Illinois              Dry              $110        $110        $0
            Indiana               Dry              $103        $103        $0
            Iowa                  Dry              $103        $103        $0
            Michigan              Dry              $100        $100        $0
            Minnesota             Dry              $100        $100        $0
            Nebraska              Dry              $102        $102        $0
            New York              Dry              $120        $120        $0
            North Dakota          Dry              $100        $100        $0
            Ohio                  Dry              $105        $105        $0
            South Dakota          Dry              $100        $100        $0
            Wisconsin             Dry              $105        $105        $0
Valero Energy Corp., San Antonio, TX (402-932-5901)
            Indiana               Dry              $105        $105        $0
            Iowa                  Dry              $105        $105        $0
            Minnesota             Dry              $105        $105        $0
            Nebraska              Dry              $108        $108        $0
            Ohio                  Dry              $110        $110        $0
            South Dakota          Dry              $95          $95        $0
            California                             $172        $172        $0
Western Milling, Goshen, California (559-302-1074)
            California            Dry              $176        $176        $0
*Prices listed per ton.
            Weekly Average                         $106        $107       -$1
The weekly average prices above reflect only those companies DTN
collects spot prices from. States include: Missouri, Iowa, Nebraska,
Kansas, Illinois, Minnesota, North Dakota, South Dakota, Michigan,
Wisconsin and Indiana. Prices for Pennsylvania, New York and
California are not included in the averages.


                     VALUE OF DDG VS. CORN & SOYBEAN MEAL
                        Settlement Price:   Quote Date      Bushel  Short Ton
                                     Corn      8/31/2017   $3.4225      $122.23
                             Soybean Meal      8/31/2017   $294.30
            DDG Weekly Average Spot Price        $106.00
                                  DDG Value Relative to:   8/31        8/24
                                                    Corn    86.72%       87.60%
                                            Soybean Meal    36.01%       35.95%
                               Cost Per Unit of Protein:
                                                     DDG     $3.93        $3.96
                                            Soybean Meal     $6.20        $6.27
Notes:
Corn and soybean prices take from DTN Market Quotes. DDG price
represents the average spot price from Midwest companies
collected on Thursday afternoons. Soybean meal cost per unit
of protein is cost per ton divided by 47.5. DDG cost per unit
of protein is cost per ton divided by 27.

   Mary Kennedy can be reached at mary.kennedy@dtn.com 

   Follow Mary Kennedy on Twitter @MaryCKenn

******************************************************************************
Harvey Responsible for Rail Embargoes, Texas Gulf Port Closures 

   Major rail service throughout eastern Texas remains at a standstill and the 
U.S. Coast Guard has suspended operations at ports, as well, as Tropical Storm 
Harvey continues to cause widespread flooding in the region. 

   Harvey, which initially made landfall in Texas late Aug. 25 as a Category 4 
hurricane and was later downgraded to a tropical storm, has destroyed property 
in Corpus Christi, Rock Port, Port Aransas and other coastal towns in its path. 

   Port Arthur, Texas, was near the eye of the storm Wednesday morning. The 
city is essentially underwater as officials started evacuating the city in the 
midst of torrential downpours, an area rancher told DTN. Port Arthur also is 
home to the nation's largest oil refinery. 

   Since Harvey came ashore, the rain has caused catastrophic flooding in 
Houston, with a record-breaking 51.88 inches of rain already recorded in Cedar 
Bayou, Texas, according to the National Weather Service. And it's not done yet.

   As Tropical Storm Harvey continues to cause widespread flooding in the 
Houston area, rail operations have been suspended along the Gulf Coast from 
Brownsville, Texas, to Lake Charles, Louisiana, due to high water and storm 
damage. 

   BNSF notified all customers on Tuesday that the flooding is causing major 
disruptions to BNSF service and operations in the region. 

   "Some locations have received nearly 40 inches of rain and several more 
inches are expected during the next 48 hours. With multiple washouts and high 
water reported on BNSF main lines in the area, all traffic destined 
to/originating from Houston has been suspended. Other area rail lines, 
including those with BNSF trackage rights, have also been forced out of 
service," noted the service advisory posted on the BNSF website.

   BNSF also noted that, "All operations at BNSF Houston-area railyards and 
facilities, including our Pearland Intermodal and Automotive facilities, are 
currently suspended. Portions of major interstate highways in the Houston area 
remain closed and officials continue to urge residents to stay off local 
roadways. Our 24/7 Command Center remains in frequent communication with local, 
state and federal emergency personnel to evaluate conditions and determine when 
operations can safely resume." 

   Union Pacific (UP) posted a service announcement on their website, as well, 
stating that rail operations along the Gulf Coast from Brownsville, Texas, to 
Lake Charles, Louisiana, are currently suspended due to high water and storm 
damage. 

   "As weather and access to storm-damaged areas allows, we are inspecting and 
repairing track, bridges and signals to return to service as quickly and safely 
as possible. Until the storms move out and the flooding recedes, we are not 
able to access or inspect our tracks and facilities in the greater Houston 
area. Rain and flooding continues in Houston and east of Houston into 
Louisiana. Routes through San Antonio are opening up which will allow us to run 
trains both north and south between San Antonio."

   The UP added, "We have issued embargoes on all rail traffic destined to 
stations on the Gulf Coast and inland that comprise our Houston Service Unit. 
The embargo is for all rail traffic, including intermodal equipment and 
automotive shipments. Customers should consider diverting cars away from the 
impacted area."

   TEXAS GULF PORTS CLOSED FOR BUSINESS

   Water in the Houston Ship Channel, one of the nation's busiest waterways, is 
at levels never seen before, according to news reports there. An "alert" on the 
Port of Houston website stated that, "All Port Houston facilities will remain 
closed on Wednesday, Aug. 30, due to the weather impact across Houston. We will 
be continuing to monitor weather conditions to determine when operations can 
safely resume. At this point, no indications from the U.S. Coast Guard (USCG) 
on when the Houston Ship Channel will reopen for vessel transits. Updates will 
be provided as more information is available." 

   A press release sent to DTN from the Port of Corpus Christi (Port) said that 
the Corpus Christi Ship Channel (Ship Channel) remains closed as the USCG is 
maintaining condition "Zulu" for all areas of the ship channel. Zula is the 
official marine term that suspends operations and closes ports to incoming and 
outgoing vessel traffic. The Coast Guard has issued a modified Zulu status for 
the Inner Harbor to allow for vessels with up to 20 feet draft to operate. 

   The port is in close coordination with federal, state and regional agencies, 
including the U.S. Army Corps of Engineers (USACE) and the USCG, to expedite 
hydrographic surveys of the ship channel to identify shoaling areas as a result 
of the hurricane. Surveying efforts have been hampered by weather conditions, 
but as weather improves, it is anticipated the remaining areas of the channel, 
which require surveys, will be completed in the next 48 hours. 

   "Power has been restored to most Port of Corpus Christi Authority (PCCA) 
facilities. Port personnel are working round the clock in assessing facility 
damage and have recalled all Tier 2 employees. It is anticipated that all 
remaining Tier 3 employees will be recalled in the next few days. The PCCA 
continues working toward achieving normal business operations by September 
4th," said port officials.

   IMPACT ON AGRICULTURE SHIPMENTS

   According to USDA, the Texas Gulf accounts for 24% of wheat exports, 3% of 
corn exports, and 2% of soybean exports. Last week, prior to the storm, 2.5 
million bushels of wheat were exported from the Texas Gulf. No soybeans or corn 
were exported from the Texas Gulf last week, prior to the storm.

   Mike Steenhoek, executive director of the Soy Transportation Coalition, told 
DTN, "From a soybean and corn logistics perspective, the larger concern occurs 
if the consequences of Harvey extend farther east to the 230-mile stretch of 
the Mississippi River from Baton Rouge, Louisiana, to the Gulf of Mexico." 

   According to USDA, the Gulf of Mexico region accounts for 60% of soybean 
exports, 59% of corn exports and 14% of wheat exports. During the week ending 
Aug. 17, approximately 18.4 million bushels of soybeans were exported from the 
Mississippi Gulf, the equivalent of eight to 10 ocean vessels.    

   Steenhoek said the Harvey storm system may increase the risk of prolonged 
heavy rain in southern Louisiana. "Some estimates for rainfall include 10-15 
inches in the Baton Rouge to New Orleans area. Grain handlers who export from 
and service the Mississippi Gulf region are taking Hurricane Harvey very 
seriously. Obviously, heavy rain will delay the ability to load ocean vessels 
and unload barges. Heavy winds and storm surges, if they occur, could damage 
the export terminals."

   As of Aug. 29, the heavy rain had not yet hit the Mississippi Gulf region. 
The midday DTN weather forecast on Aug. 29 said that Tropical Storm Harvey was 
located 115 miles south-southwest of Cameron, Louisiana, and was moving toward 
the north, northeast near 5 mph. A general north-northeast track is expected 
Tuesday and Wednesday. 

   Mary Kennedy can be reached at mary.kennedy@dtn.com 

   Follow Mary Kennedy on Twitter @MaryCKenn

******************************************************************************
Transportation Board to CSX: Get Your Service Back on Track

   After receiving complaints from shippers about CSX Transportation, Inc. 
(CSX), the U.S. Surface Transportation Board (STB) wrote a letter July 27 to 
CSX President and CEO Hunter Harrison stating its concern about service 
problems that had resulted from "ongoing operating changes" underway at CSX.

   The STB has received complaints from shippers saying loaded and empty cars 
have sat for days at yards and switching operations have become inconsistent 
and unreliable. Shippers said car routings had become inefficient and CSX 
customer service personnel were unable to provide "meaningful assistance." 

   A survey released in early August by Cowen and Company noted that at least 
80% of shippers surveyed said they've had service problems with CSX since the 
company began using "precision scheduled railroading." The survey also noted 
that 67% have resorted to trucks to relieve the pressure of slow rail service 
and close to 40% of shippers switched some freight to Norfolk Southern where 
possible.

   On Aug. 14, the STB requested that CSX submit weekly specific service 
performance data to the board's Rail Customer and Public Assistance office for 
"purposes of ongoing calls between CSX senior management and STB staff. The 
performance data will assist the Board in actively monitoring CSX's service 
levels and the effectiveness of its recovery efforts." The STB also noted that 
it remained concerned over "the widespread degradation of rail service."

   Also on Aug. 14, the Rail Customer Coalition (RCC) sent a letter to members 
of the Senate Committee on Commerce, Science, and Transportation, notifying 
them that RCC members are "concerned that the severe deterioration of service 
will continue for the foreseeable future, and that changes imposed by CSX may 
fundamentally degrade the long-term resiliency of the national rail network.

   "Rail customers have had to take extraordinary steps at great cost to meet 
the needs of their customers because CSX has repeatedly failed to pick up and 
deliver cars," added the RCC. "This has put rail-dependent business operations 
throughout the U.S. at risk of shutting down, caused severe bottlenecks in the 
delivery of key goods and services, and has put the health of our nation's 
economy in jeopardy."

   Here is a link to the letter from the RCC to the committee: 
https://goo.gl/AiQpu4 

   The American Shipper publication reported that Harrison sent a letter to the 
RCC in response to the Aug. 14 letter noting that that the coalition never 
contacted CSX to discuss the service concerns. According to the article, 
Harrison said that the statements made by the RCC were made to advance their 
"longstanding attack on the balanced approaches of the Staggers Act. Despite 
customer service problems, which CSX is addressing aggressively, the railroad 
is already seeing progress," added Harrison. 

   The Staggers Rail Act of 1980 was a U.S. federal law that deregulated the 
American railroad industry to a significant extent and replaced the regulatory 
structure that had existed since the 1887 Interstate Commerce Act. 

   Many shippers would probably wholeheartedly disagree with Harrison's 
statement. Besides delayed agriculture shipments, other industries have also 
complained to the STB about CSX. One of those, Amtrak, told the STB that its 
on-time performance went from bad to worse in July because of the CSX service 
problems. S&P Global Platts reported that coal producers Murray Energy and 
Foresight Energy have urged the STB to institute a proceeding to address CSX's 
"brazen refusal to meet the demands for coal transportation."

   On Aug. 16, the STB updated the Senate Committee on Commerce, Science, and 
Transportation and the House Committee on Transportation and Infrastructure on 
recent actions the board has taken in response to service problems on the CSX 
rail system. 

   "In addition to the ongoing weekly calls between CSX senior management and 
STB staff initiated late July, the Board advised the committees of the Acting 
Chairman's direct communication with CSX's President and CEO about service 
issues and the Board's request that CSX provide specific performance data, 
which will be made publicly available, so that the Board and stakeholders can 
better monitor CSX's recovery efforts," said the STB in a press release.

   While CSX said it would provide the information requested by the STB, the 
STB said "it is not apparent to the Board or invested stakeholders that there 
have not been tangible service improvements." 

   In the second letter to Harrison, STB said it was asking for a "detailed 
schedule" for CSX's remaining implementation of its new operating plan, 
including key action items and milestones for the balance of 2017, by Aug. 24. 

   CSX also indicated to the STB that its internal metrics are showing that 
service in some areas is improving and that noticeable improvements should be 
more evident after Labor Day.

   News reports said that Harrison also sent an email to CSX customers 
apologizing for the service disruptions, which he blamed on "resistance to the 
restructuring plan on the part of some employees. The pace of change at CSX has 
been extremely rapid, and while most people at the company have embraced the 
new plan, unfortunately, a few have pushed back and continue to do so," 
Harrison wrote. 

   The "restructuring" Harrison is referring to are the changes he has made 
since he became CEO in March 2017. The railroad has taken nearly 900 
locomotives and 60,000 freight cars out of service and laid off 2,300 people 
this year. On top of that, Harrison is also planning to lay off 700 more 
positions by the end of the year.

   On Aug. 24, the STB announced it will hold a public listening session 
beginning at 9:30 a.m., on Tuesday, Sept. 12, at its offices in Washington, 
D.C., to hear firsthand from CSX senior officials and affected shippers about 
CSX rail service and efforts to improve service. 

   In the meantime, the board said it will continue to address these "important 
service reliability issues in a transparent manner to ensure shippers, 
carriers, and all interested stakeholders are fully informed about the Board's 
work."  

   Here is a link to the STB correspondence to the Congressional oversight 
committees of the STB and CSX: 
https://www.stb.gov/stb/elibrary/NDP_Correspondence.html. 

   Here is a link to the responses sent by Harrison to the STB on Aug. 21 and 
Aug. 24: https://www.stb.gov/stb/railserviceissues/rail_service_update.html. 

   Mary Kennedy can be reached at mary.kennedy@dtn.com 

   Follow Mary Kennedy on Twitter @MaryCKenn

******************************************************************************
DDG Prices Weaker

   OMAHA (DTN) -- The DTN average dried distillers grains (DDG) spot price from 
the 39 locations DTN collects bids from was $107 for the week ended Aug. 24, 
three cents lower on average from two weeks ago. 

   Based on the average of bids collected by DTN, the value of DDG relative to 
corn for the week ended Aug. 24 was at 87.60%, and the value of DDG relative to 
soybean meal was at 35.95%. The cost per unit of protein for DDG was $3.96, 
compared to the cost per unit of protein for soybean meal at $6.27.

   A merchandiser in California told DTN the market was "very soft out here" 
with the drop in the board, collapsing canola meal values, and heat suppressing 
cow feed intake. Since August 1, the DTN Cash Index has lost 14 cents as of 
Aug. 24. Some merchandisers noted that the market was "sideways" the past few 
weeks and another said the market has been "dismal." 

   CIF NOLA (New Orleans, Louisiana) dried distillers grains with solubles, or 
DDGS, prices weakened in the past few weeks with August at $143 to $147, and 
August-September at $142 to $146. Barge movement could see interruptions and/or 
slowdowns as Hurricane Harvey makes landfall in the Texas Gulf, with heavy 
rains possibly causing flooding on the Mississippi River from Baton Rouge, 
Louisiana, to the Gulf of Mexico, depending on where the path of the storm 
goes. There is still nothing official on Vietnam returning to the U.S market, 
but rumors are circulating it may be September.

   DDGS News

   A Regional Nutrition Conference was held earlier this month in Peru, 
organized by the U.S. Grains Council (USGC) with support from the U.S. 
Department of Agriculture's (USDA) Foreign Agricultural Service (FAS). 
Attendees included 126 participants from across the region, including Colombia, 
Peru, Ecuador, Costa Rica, Chile, the Dominican Republic, Mexico, Venezuela and 
Honduras. Many attendees expressed interest in further collaborating with the 
USGC, including evaluating DDGS in dairy cattle diets under tropical 
conditions, importing and distributing DDGS to smaller end-users in Ecuador and 
Peru, and evaluating DDGS corn oil in poultry diets in Colombia. 

   "There is overnight opportunity for increased DDGS and sorghum sales 
throughout the region with both current and potential users," said Marri Carrow 
Tejada, USGC regional director for the Western Hemisphere. "Educational 
activities such as this one increase awareness of our U.S. products with key 
decision makers in the livestock sector -- nutritionists. This, in turn, 
absolutely contributes to increased sales in the region."


                               CURRENT    PREVIOUS    CHANGE
COMPANY   STATE                           8/24/017   8/10/017
Bartlett and Company, Kansas City, MO (816-753-6300)
          Missouri            Dry           $120       $120     $0
                              Modified      $60        $60      $0
CHS, Minneapolis, MN (800-769-1066)
          Illinois            Dry           $115       $115     $0
          Indiana             Dry           $110       $112     -$2
          Iowa                Dry           $110       $110     $0
          Michigan            Dry           $105       $105     $0
          Minnesota           Dry           $105       $105     $0
          North Dakota        Dry           $115       $115     $0
          New York            Dry           $120       $125     -$5
          South Dakota        Dry           $105       $105     $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
          Kansas              Dry           $108       $112     -$4
POET Nutrition, Sioux Falls, SD (888-327-8799)
          Indiana             Dry           $108       $110     -$2
          Iowa                Dry           $108       $108     $0
          Michigan            Dry           $105       $108     -$3
          Minnesota           Dry           $108       $110     -$2
          Missouri            Dry           $120       $120     $0
          Ohio                Dry           $108       $110     -$2
          South Dakota        Dry           $103       $103     $0
    `              `
United BioEnergy, Wichita, KS (316-616-3521)
          Kansas              Dry           $114       $114     $0
                              Wet           $45        $45      $0
          Illinois            Dry           $125       $122     $3
          Nebraska            Dry           $114       $114     $0
                              Wet           $45        $45      $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
          Illinois            Dry           $110       $110     $0
          Indiana             Dry           $103       $108     -$5
          Iowa                Dry           $103       $108     -$5
          Michigan            Dry           $100       $105     -$5
          Minnesota           Dry           $100       $105     -$5
          Nebraska            Dry           $102       $102     $0
          New York            Dry           $120       $135    -$15
          North Dakota        Dry           $100       $105     -$5
          Ohio                Dry           $105       $110     -$5
          South Dakota        Dry           $100       $100     $0
          Wisconsin           Dry           $105       $110     -$5
Valero Energy Corp., San Antonio, TX (402-932-5901)
          Indiana             Dry           $105       $110     -$5
          Iowa                Dry           $105       $110     -$5
          Minnesota           Dry           $105       $110     -$5
          Nebraska            Dry           $108       $108     $0
          Ohio                Dry           $110       $115     -$5
          South Dakota        Dry           $95        $100     -$5
          California                        $172       $172     $0
Western Milling, Goshen, California (559-302-1074)
          California          Dry           $176       $182     -$6
*Prices listed per ton.
          Weekly Average                    $107       $110     -$3
The weekly average prices above reflect only those companies DTN
collects spot prices from. States include: Missouri, Iowa, Nebraska,
Kansas, Illinois, Minnesota, North Dakota, South Dakota, Michigan,
Wisconsin and Indiana. Prices for Pennsylvania, New York and
California are not included in the averages.

             VALUE OF DDG VS. CORN & SOYBEAN MEAL
               Settlement Price: Quote Date   Bushel Short Ton
                            Corn   8/24/2017 $3.4200   $122.14
                    Soybean Meal   8/24/2017 $297.60
   DDG Weekly Average Spot Price     $107.00
                      DDG Value Relative to:  8/24     8/10
                                        Corn  87.60%    84.21%
                                Soybean Meal  35.95%    37.39%
                   Cost Per Unit of Protein:
                                         DDG   $3.96     $4.07
                                Soybean Meal   $6.27     $6.19
Notes:
Corn and soybean prices take from DTN Market Quotes. DDG price
represents the average spot price from Midwest companies
collected on Thursday afternoons. Soybean meal cost per unit
of protein is cost per ton divided by 47.5. DDG cost per unit
of protein is cost per ton divided by 27.

   Mary Kennedy can be reached at Mary.Kennedy@dtn.com

   Follow her on Twitter @MaryCKenn

    

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