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Market Matters Blog           02/15 12:39
Domestic DDG Prices Steady
Infrastructure Funding Remains in Limbo
Domestic DDG Prices Lower on Average
St. Paul District Corps of Engineers Releases 2018 Lock and Dam Statistics 
Domestic DDG Prices Slightly Lower on Average
Grain Shipments Lead 2018 Great Lakes Seaway Navigation Season
Domestic DDG Prices Lower on Average
DDG Prices Lower Again
Positive Train Control: Did Railroads Meet 2018 Deadline?
DDG Prices Continue Lower

******************************************************************************
Domestic DDG Prices Steady

   OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price 
from the 40 locations DTN contacted was steady at $141 per ton for the week 
ended Feb. 14 versus the prior week. 

   Spot truck values collected by DTN are steady with merchandisers telling DTN 
the market was quiet the past week. Energy Information Administration data 
released Wednesday showed plant production rising for the first time in four 
weeks, as plants are able to manage the winter weather better after the polar 
vortex presented a challenge for some of their plant equipment, noted a few 
merchandisers.

   Based on the average of prices collected by DTN, the value of DDG relative 
to corn for the week ended Feb. 14 was at 105.35%. The value of DDG relative to 
soybean meal was at 46.15%. The cost per unit of protein for DDG was $5.22, 
compared to the cost per unit of protein for soybean meal at $6.43.

   In their weekly DDGS update, the U.S. Grains Council noted that DDGS 
indications were mostly unchanged this week on the heels of the Lunar New Year 
celebrations. Forty-foot containers to Southeast Asia (March delivery) were 
unchanged. Prices at the U.S. Gulf ticked up as barge logistics continue to 
complicate nearby delivery, and U.S. rail rates were up $1 per metric ton on 
average. "With Asian buyers returning to the market following the holiday lull, 
merchandisers report an uptick in business from especially Southeast Asia, 
including Vietnam. Additional interest from Egypt and the Mediterranean is 
being reported as well."

   Logistics on most of the U.S. river system remain a challenge for barges 
heading to the Gulf. "Baton Rouge and New Orleans Harbors have had weather 
related stoppages and slowdowns including high water, rains, and fog since 
[the] end [of] December. This has been [an] unprecedented period of time 
without relief," said Tom Russell, Russell Marine Group. "In the Harbor, safety 
protocols due [to] high water are in place. Added to that, above average rains 
in the Ohio River Valley, high water on Lower Mississippi and the Nola/Baton 
Rouge Harbors will be an issue for [an] extended period of time and last 
months."


ALL PRICES SUBJECT TO CONFIRMATION       CURRENT     PREVIOUS CHANGE
COMPANY STATE                           2/14/2019    2/7/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
        Missouri            Dry            $150        $150     $0
                            Modified       $80         $80      $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
        Missouri Subject    Dry            $150        $150     $0
                            Wet            $80         $80      $0
CHS, Minneapolis, MN (800-769-1066)
        Illinois            Dry            $145        $145     $0
        Indiana             Dry            $140        $140     $0
        Iowa                Dry            $130        $130     $0
        Michigan            Dry            $145        $145     $0
        Minnesota           Dry            $135        $135     $0
        North Dakota        Dry            $140        $140     $0
        New York            Dry            $155        $155     $0
        South Dakota        Dry            $140        $140     $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
        Kansas              Dry            $145        $145     $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
        Indiana             Dry            $136        $138    -$2
        Iowa                Dry            $134        $136    -$2
        Michigan            Dry            $130        $130     $0
        Minnesota           Dry            $134        $137    -$3
        Missouri            Dry            $149        $154    -$5
        Ohio                Dry            $145        $142     $3
        South Dakota        Dry            $145        $143     $2
United BioEnergy, Wichita, KS (316-616-3521)
        Kansas              Dry            $140        $145    -$5
                            Wet            $60         $60      $0
        Illinois            Dry            $145        $150    -$5
        Nebraska            Dry            $140        $145    -$5
                            Wet            $60         $60      $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
        Illinois            Dry            $137        $137     $0
        Indiana             Dry            $135        $135     $0
        Iowa                Dry            $130        $130     $0
        Michigan            Dry            $135        $135     $0
        Minnesota           Dry            $130        $130     $0
        Nebraska            Dry            $130        $130     $0
        New York            Dry            $152        $152     $0
        North Dakota        Dry            $165        $165     $0
        Ohio                Dry            $145        $145     $0
        South Dakota        Dry            $140        $140     $0
        Wisconsin           Dry            $140        $140     $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
        Indiana             Dry            $150        $150     $0
        Iowa                Dry            $135        $135     $0
        Minnesota           Dry            $135        $135     $0
        Nebraska            Dry            $135        $135     $0
        Ohio                Dry            $160        $160     $0
        South Dakota        Dry            $140        $140     $0
        California                         $197        $197     $0
Western Milling, Goshen, California (559-302-1074)
        California          Dry            $210        $210     $0
*Prices listed per ton.
        Weekly Average                     $141        $141     $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   2/14/2019 $3.7475   $133.84
                    Soybean Meal   2/14/2019 $305.50
   DDG Weekly Average Spot Price     $141.00
                      DDG Value Relative to:  2/14      2/7
                                        Corn 105.35%   106.35%
                                Soybean Meal  46.15%    46.81%
                   Cost Per Unit of Protein:
                                         DDG   $5.22     $5.30
                                Soybean Meal   $6.43     $6.43
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

******************************************************************************
Infrastructure Funding Remains in Limbo

   During the signing of the tax overhaul bill on Dec. 22, 2017, President 
Donald Trump said, "Infrastructure is by far the easiest," according to a 
Washington Post article from Jan. 3, 2018. "People want it -- Republicans and 
Democrats. We're going to have tremendous Democrat support on infrastructure as 
you know. I could've started with infrastructure -- I actually wanted to save 
the easy one for the one down the road. So we'll be having that done pretty 
quickly," the Washington Post quoted the president as saying.

   Over one year later, there is still no firm plan for how to fund and fix the 
nation's aging infrastructure. In March 2018, the American Society of Civil 
Engineers (ASCE) released their 2017 Infrastructure Report Card, an assessment 
of the condition of the nation's infrastructure across 16 categories (roads, 
bridges, railroads, inland waterways, etc.). This report card is issued every 
four years. The overall grade for the entire 16 categories was a D-plus. 
(https://www.infrastructurereportcard.org/) 

   At that time, in regard to the infrastructure report card, Mike Steenhoek, 
executive director of Soy Transportation Coalition (STC), told DTN: "First of 
all, it's hard to have an A-plus economy and A-plus agriculture with a D-plus 
infrastructure. In order to be profitable, it is not sufficient to stimulate 
supply and demand. It is also essential to stimulate greater connectivity with 
supply and demand. Transportation infrastructure provides that connectivity." 

   Steenhoek continued: "I like to argue that agriculture has one of the most 
diverse and elongated supply chains of any industry in existence. We are 
heavily exposed to and dependent upon our system of roads and bridges, highways 
and interstates, inland waterways, railroads and ports. Farmers do not have the 
luxury of locating themselves in proximity to infrastructure. Rather, farmers 
hope infrastructure locates in proximity to them. Our viability as an industry 
depends upon having each of these modes being properly maintained and providing 
seamless transition from one to the other."  

   After President Trump's State of the Union speech last week, in which the 
president called for a bipartisan effort to address the needs of the nation's 
infrastructure, I asked Steenhoek again about his thoughts on the subject.

   Here is what Steenhoek had to say: "While we are very appreciative of the 
inclusion of transportation infrastructure during the President's remarks, we 
are particularly hopeful that this intention will soon become an outcome. We 
encourage the President and Congress to enhance not just the transportation 
needs of urban America, but also the needs of rural America.

   "The temptation among our elected leaders is to regard transportation 
challenges in terms of urban congestion or long commute times. While this is 
most certainly a frustrating reality for many Americans that should be 
addressed, we must also be attentive to the addressing the challenges of moving 
freight, including agricultural freight."

   The ASCE report card provided proof that our infrastructure is crumbling and 
is in dire need of funding. The nation's roads received a D-minus, with inland 
waterways, dams and levees receiving the next lowest grade of D. 

   In 2018, the Soy Transportation Coalition released its "Top 10 Most Wanted 
List" of infrastructure priorities. Steenhoek told me last week that the STC is 
hopeful any effort by our elected leaders to address our transportation 
challenges will include some or all of these priorities.   

   Soy Transportation Coalition's "Top 10 Most Wanted List" of Transportation 
Priorities:

   -- Maintenance and rehabilitation of locks and dams to significantly reduce 
the potential for unexpected, widespread and prolonged failure. Priority should 
be devoted to ensuring the reliability of locks and dams along the nation's 
inland waterways. 

   -- Dredging the lower Mississippi River between Baton Rouge, Louisiana, to 
the Gulf of Mexico to 50 feet.  

   -- Ensuring the Columbia River shipping channel from Portland, Oregon, to 
the Pacific Ocean is maintained at no less than 43 feet.  

   -- Permit six-axle, 91,000-pound semis to operate on the interstate highway 
system.  

   -- Increase the federal fuel tax by 10 cents a gallon and index the tax to 
inflation. Ensure rural areas receive proportionate, sufficient funding from 
the fuel tax increase.  

    -- Provide greater predictability and reliability of funding for the locks 
and dams along the inland waterway system.

   -- Provide block grants to states to replace the top 20 most critical rural 
bridges.

   -- Provide grants to states to implement rural bridge load testing projects 
to more accurately diagnose which bridges are sufficient and which are 
deficient.  

   -- Ensure full utilization of the Harbor Maintenance Trust Fund for port 
improvement initiatives.

   -- Permanent (or at least multi-year) extension of the short-line railroad 
tax credit.

   Steenhoek commented that one particular infrastructure investment included 
on the list that could provide substantial benefit to farmers would be to 
dredge the lower Mississippi River from 45 feet to 50 feet. A deeper river 
would allow both larger ships to be utilized and current ships being utilized 
to be loaded with more revenue-producing freight

   "The 256-mile stretch of the Mississippi River from Baton Rouge, Louisiana, 
to the Gulf of Mexico accounts for 60% of U.S. soybean exports, along with 59% 
of corn exports -- by far the leading export region for both commodities," said 
Steenhoek. "The STC research highlighted that shipping costs for soybeans from 
Mississippi Gulf export terminals could decline 13 cents per bushel ($5 per 
metric ton) if the lower Mississippi River is dredged to 50 feet."  

   The STC research further estimated farmers in the 31 evaluated states could 
annually receive an additional $461 million for their soybeans due to a more 
favorable basis resulting from dredging the lower Mississippi River to 50 feet. 
"All too often, infrastructure projects can only provide a theoretical benefit. 
Dredging the lower Mississippi River is an example of a tangible investment 
having a tangible impact on farmers throughout the country," said Steenhoek.

   None of that matters if our current lock and dam system fails, shutting off 
commerce on the river system. The U.S. Army Corps of Engineers (USACE) has said 
in the past that it is "unable to adequately fund maintenance activities to 
ensure the navigation system operates at an acceptable level of performance." A 
failure of significant duration, especially during and after harvest, would 
have a negative impact on the soybean and grain industries and cause farmers to 
lose money, affecting their profitability. 

   Steenhoek noted that, in 2013, Congress allocated $4.7 billion to the Army 
Corps of Engineers' Civil Works Program, which is the account responsible for 
maintaining and improving our nation's locks and dams. The current 
appropriations bill allocated $6.9 billion -- a 47% increase over five years. 

   "Congress and the Administration need to build on this momentum in order to 
provide a well-maintained system of locks and dams. A failure at one or more of 
these sites would have severe consequences on the competitiveness of the 
American farmer," said Steenhoek. 

   "We sincerely hope a bipartisan effort can produce an infrastructure 
initiative that benefits the needs of both urban and rural areas of this 
country," said Steenhoek. "It is time for infrastructure to move from the on 
deck circle to the batter's box."  

   Here is a link to the STC website: http://www.soytransportation.org/. 

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

   Follow her on Twitter @MaryCKenn

******************************************************************************
Domestic DDG Prices Lower on Average

   OMAHA (DTN) -- The domestic distillers dried grains (DDG) average spot price 
from the 40 locations DTN contacted was $3 lower at $141 per ton for the week 
ended Feb. 7 versus the prior week. 

   Spot truck values collected by DTN are steady to lower again this week, even 
as ethanol plant production dropped by the most in three weeks. Production was 
down 45,000 barrels per day (bpd) to 967,000 million bpd with output down 8.5% 
from a year ago, according to weekly energy data. Buyers are still not ready to 
increase inclusion rates in rations, but as DDG prices continue to get cheaper, 
they should return to buying. 

   Based on the average of prices collected by DTN, the value of DDG relative 
to corn for the week ended Feb. 7 was at 106.35%. The value of DDG relative to 
soybean meal was at 46.81%. The cost per unit of protein for DDG was $5.30, 
compared to the cost per unit of protein for soybean meal at $6.43.

   CIF NOLA distillers dried grains with solubles (DDGS) prices are firm, as 
river conditions remain messy. Ice on the Illinois River is causing slowdowns 
as it moves down river and high water in the Lower Mississippi River, coupled 
with heavy fog in the Gulf, has slowed barge traffic heading south and slowed 
and/or stalled vessel loadings in the Gulf. ACBL noted that at the Gulf, the 
canals will experience wind delays beginning Friday and lasting until Saturday 
afternoon. "There will be a brief 24-48 hour window of improved conditions, but 
then fog is expected to roll back in early next week. Expect significant delays 
in pickup and transit time."

   The U.S. Census Bureau said Wednesday that U.S. exports of DDGS totaled 
1,016,544 mt in November, a little less than October, but up 16% from a year 
ago. U.S DDGS continue to find broad interest with Mexico, Vietnam, Indonesia, 
Thailand and South Korea listed as the top five destinations, accounting for 
58% of exports in November. The first eleven months of 2018 showed exports of 
U.S. DDGS up 9% from a year ago.

   However, as of Jan.1, 2019, Thailand stopped buying U.S. DDGS because of a 
new fumigation requirement imposed after beetles were discovered in a shipment 
in late 2018. Regulations require all DDGS shipments entering the country to be 
fumigated with methyl bromide, but U.S. shippers prefer to use phosphine. This 
is the same issue that caused Vietnam imports of DDGS to be stalled for almost 
one year between fall 2016 and fall 2017, finally ending after Vietnam eased 
fumigation requirements. Merchandisers told DTN that the Thai Ministry of 
Agriculture has been quiet on this issue to date.


ALL PRICES SUBJECT TO CONFIRMATION             CURRENT       PREVIOUS   CHANGE
COMPANY  STATE                                 2/7/2019      1/31/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
         Missouri              Dry               $150          $160      -$10
                               Modified          $80            $85       -$5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
         Missouri Subject      Dry               $150          $150       $0
                               Wet               $80            $80       $0
CHS, Minneapolis, MN (800-769-1066)
         Illinois              Dry               $145          $145       $0
         Indiana               Dry               $140          $140       $0
         Iowa                  Dry               $130          $130       $0
         Michigan              Dry               $145          $145       $0
         Minnesota             Dry               $135          $135       $0
         North Dakota          Dry               $140          $140       $0
         New York              Dry               $155          $155       $0
         South Dakota          Dry               $140          $140       $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
         Kansas                Dry               $145          $145       $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
         Indiana               Dry               $138          $140       -$2
         Iowa                  Dry               $136          $143       -$7
         Michigan              Dry               $130          $130       $0
         Minnesota             Dry               $137          $140       -$3
         Missouri              Dry               $154          $158       -$4
         Ohio                  Dry               $142          $142       $0
         South Dakota          Dry               $143          $147       -$4
United BioEnergy, Wichita, KS (316-616-3521)
         Kansas                Dry               $145          $145       $0
                               Wet               $60            $60       $0
         Illinois              Dry               $150          $150       $0
         Nebraska              Dry               $145          $145       $0
                               Wet               $60            $60       $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
         Illinois              Dry               $137          $137       $0
         Indiana               Dry               $135          $135       $0
         Iowa                  Dry               $130          $132       -$2
         Michigan              Dry               $135          $135       $0
         Minnesota             Dry               $130          $135       -$5
         Nebraska              Dry               $130          $135       -$5
         New York              Dry               $152          $152       $0
         North Dakota          Dry               $165          $165       $0
         Ohio                  Dry               $145          $145       $0
         South Dakota          Dry               $140          $140       $0
         Wisconsin             Dry               $140          $135       $5
Valero Energy Corp, San Antonio Texas      (210-345-3362)   (210-345-3362)
         Indiana               Dry               $150          $155       -$5
         Iowa                  Dry               $135          $145      -$10
         Minnesota             Dry               $135          $150      -$15
         Nebraska              Dry               $135          $150      -$15
         Ohio                  Dry               $160          $160       $0
         South Dakota          Dry               $140          $155      -$15
         California                              $197          $200       -$3
Western Milling, Goshen, California (559-302-1074)
         California            Dry               $210          $210       $0
*Prices listed per ton.
         Weekly Average                          $141          $144       -$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                                      2/8/2019       $3.7425   $133.66
Soybean Meal                              2/8/2019       $306.10
DDG Weekly Average Spot Price             $141.00
DDG Value Relative to:                                   2/7       1/31
Corn                                                     106.35%   107.09%
Soybean Meal                                             46.81%    46.45%
Cost Per Unit of Protein:
DDG                                                      $5.30     $5.33
Soybean Meal                                             $6.43     $6.53
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

******************************************************************************
St. Paul District Corps of Engineers Releases 2018 Lock and Dam Statistics 

   In the northern tier of the Upper Mississippi River (UMR), the 2018 shipping 
season opened on April 11, 2018, the latest start to the shipping season in the 
UMR not related to flooding. The season ended Dec. 1 2018 as the last tow 
passed through Lock and Dam 10, located on Mississippi River mile 615.0 near 
Guttenberg, Iowa. Lock and Dam 10 was constructed and placed in operation 
November 1937. The northern section of the UMR starts in St. Paul, Minnesota, 
and runs downriver through Guttenberg. 

   The last stop on the UMR controlled by the St. Paul District U.S. Army Corps 
of Engineers (USACE) is Lock and Dam 10. The St. Paul District maintains a 
9-foot navigation channel from Minneapolis to Guttenberg. "Keeping this system 
open is vital to the nation's economy," said the Corps.

   The Corps noted that Lock and Dam 10, near Guttenberg, was below the 10-year 
average for combined lockages. Corps staff supported 3,231 combined lockages 
during the 2018 season. The 10-year average is 3,376. The staff supported 3,608 
combined lockages during the 2017 season.

   There were 2,369 commercial navigation lockages at Lock 10 in 2018. The 
lockages supported 15,789,297 tons of commodities by the navigation industry. 
This is the highest amount since 2002. During the 2017 season, Corps staff 
supported 2,886 commercial lockages and the movement of 18,766,174 tons of 
commodities. 

   In addition to the commercial lockages, Corps staff locked 1,481 recreation 
vessels during 851 recreation lockages. To minimize lockages, the Corps tries 
to include multiple recreation vessels during a single lockage. There were an 
additional 21 lockages from various government agencies, including the Corps.

   The USACE St. Paul District said in its 2018 shipping report that navigation 
statistics fluctuate from year to year, depending on the weather, river flows 
and the length of the navigation season. 

   A wide range of bulk commercial products, or commodities, travels up and 
down the Mississippi River, according to the National Park Service (NPS), 
Minnesota region. Grain accounts for the majority of down-bound tonnage. Eight 
million tons of Minnesota's corn, soybeans and wheat is shipped annually by 
barge to New Orleans for export to destinations around the world. Liquid 
asphalt for roads and roofing is shipped down-river from Twin Cities oil 
refineries. Canadian potash is transferred from rail to barge and carried to 
locations where it is distributed for use as fertilizer. Other down-bound 
commodities include petroleum coke for power generation, scrap metal for 
reprocessing, petroleum oil, sunflower oil, DDGS, molasses and fly ash, NPS 
noted.

   The NPS also noted that principal up-bound commodities in the Twin Cities 
are led by sand and gravel used in construction and road building. Fertilizer 
arrives from Florida for application in agriculture and lawn care. Salt from 
Louisiana is used on roads and in water softeners. Cement for construction is 
shipped upstream from Iowa. Other bulk commodities carried upriver include slag 
(used in asphalt shingles), coal, caustic soda (used in industrial and food 
processes), light oil, liquid ammonia, molasses, steel, pipe and twine.

   While the final statistics for the entire river system are not available yet 
due to the government shutdown, the USDA weekly Grain Transportation Report 
gave an update in their Dec. 13 report. USDA said that as of Dec. 8, calendar 
year-to-date (YTD) grain barge tonnages through the locking portions of the 
Mississippi, Ohio, and Arkansas rivers, were 35.8 million tons, 5% below the 
three-year average and 8% lower than 2017.

   "For most of 2018, calendar YTD corn barge shipments were 22 million tons, 
up 6% compared to the three-year average. However, the additional corn tonnages 
were not enough to offset a 17% decline in YTD soybean shipments (12 million 
tons). Reduced soybean sales to China have contributed to the decrease in 
soybean barge shipments," noted the USDA.

   "Barge operators reported 2018 as being one of the more challenging years 
for navigation in many years," said the USDA. "Flooding and lock repairs 
throughout the year caused less than ideal navigation conditions, which 
resulted in increased transit times." Barge rates were above average for most 
of the year, reflecting higher operating costs due to navigation conditions. 

   SLOW START TO 2019 FOR BARGE TRAFFIC

   So far, 2019 has not started out well for barge operations on most of the 
river system that remains open during the winter. High water on the Lower 
Mississippi River (LMR) has slowed barge traffic since December and safety 
restrictions have been in place on and off. Those ranged from 
daylight-only-hours transit at certain portions of the LMR and/or reduced tow 
sizes, usually by at least one string of five barges. 

   Icing has plagued the Illinois River and last week barge lines ceased 
operations. Icing in the St. Louis Harbor also caused slowdowns the past week 
and will continue to do so as it flushes through the system. However, 
conditions were expected to begin improving over the weekend with warmer 
temperatures and rain expected through the middle of the upcoming week, before 
the return to colder weather.

   Tom Russell, Russell Marine Group, told DTN recently that the fall on LMR 
has been slow and rains mid-January in the Ohio River Valley put areas of the 
Ohio River near flood stage. "That water will likely keep the LMR charged 
throughout February," said Russell.

   The New Orleans and Baton Rouge harbors experienced extended periods of fog 
during late December and early January, noted Russell. Barge lines noted that 
higher temperatures moving in over the weekend into the first half of next week 
will create fog delays once again. 

   "Water levels in the harbor are still on a slow rise and will be near flood 
stage," said Russell. "The fast-moving rising river drops a lot of sand/silt, 
which caused vessel groundings and closed the river to traffic from time to 
time in early January. Safety protocols, which slow barge and vessel traffic, 
have been in place since December. The fast-moving river caused barge 
breakaways in fleets throughout the harbor. Heavy sand/silt buildups also 
created problems with ships heaving and or popping anchor chains. High water 
also forced the closure of some midstream terminals temporarily."

   High-water protocols are expected to be in place throughout the month of 
February for the New Orleans and Baton Rouge harbors. Russell noted that 
weather and high water will be a problem for logistics from the Midwest to the 
New Orleans/Baton Rouge harbors "at least" throughout the entire month of 
February. "Plan for and expect delays, slowdowns and stoppages," said Russell. 

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

   Follow her on Twitter @MaryCKenn

******************************************************************************
Domestic DDG Prices Slightly Lower on Average

   OMAHA (DTN) -- The domestic distillers dried grains average spot price from 
the 40 locations DTN contacted was $1 lower at $144 per ton for the week ended 
Jan. 31 versus the prior week. 

   Spot truck values collected by DTN are steady to lower again this week, even 
as ethanol plant runtimes have slowed and extreme cold is covering much of the 
Midwest. While this should mean more demand for DDG and better prices, buyers 
continue to turn away from the market thinking prices will go lower still.

   Based on the average of prices collected by DTN, the value of DDG relative 
to corn for the week ended Jan. 31 was at 107.09%. The value of DDG relative to 
soybean meal was at 46.45%. The cost per unit of protein for DDG was $5.33, 
compared to the cost per unit of protein for soybean meal at $6.53. 

   Informa Economics recently noted that DDG and ethanol traders are closely 
watching some possible key developments on the China trade policy front. 
"Chatter suggests it is possible for the U.S. to regain DDGS export access to 
China and to create new markets for ethanol. In talks this week, U.S. officials 
are expected to urge China to drop its anti-dumping and countervailing duties 
on DDGS." 


ALL PRICES SUBJECT TO CONFIRMATION             CURRENT       Previous   CHANGE
COMPANY  STATE                                1/31/2019      1/24/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
         Missouri              Dry               $160          $165       -$5
                               Modified          $85            $85       $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
         Missouri Subject      Dry               $150          $155       -$5
                               Wet               $80            $80       $0
CHS, Minneapolis, MN (800-769-1066)
         Illinois              Dry               $145          $145       $0
         Indiana               Dry               $140          $140       $0
         Iowa                  Dry               $130          $130       $0
         Michigan              Dry               $145          $145       $0
         Minnesota             Dry               $135          $140       -$5
         North Dakota          Dry               $140          $140       $0
         New York              Dry               $155          $155       $0
         South Dakota          Dry               $140          $140       $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
         Kansas                Dry               $145          $155      -$10
POET Nutrition, Sioux Falls, SD (888-327-8799)
         Indiana               Dry               $140          $140       $0
         Iowa                  Dry               $143          $143       $0
         Michigan              Dry               $130          $130       $0
         Minnesota             Dry               $140          $140       $0
         Missouri              Dry               $158          $158       $0
         Ohio                  Dry               $142          $142       $0
         South Dakota          Dry               $147          $147       $0
United BioEnergy, Wichita, KS (316-616-3521)
         Kansas                Dry               $145          $145       $0
                               Wet               $60            $60       $0
         Illinois              Dry               $150          $150       $0
         Nebraska              Dry               $145          $145       $0
                               Wet               $60            $60       $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
         Illinois              Dry               $137          $140       -$3
         Indiana               Dry               $135          $135       $0
         Iowa                  Dry               $132          $135       -$3
         Michigan              Dry               $135          $135       $0
         Minnesota             Dry               $135          $135       $0
         Nebraska              Dry               $135          $140       -$5
         New York              Dry               $152          $155       -$3
         North Dakota          Dry               $165          $170       -$5
         Ohio                  Dry               $145          $145       $0
         South Dakota          Dry               $140          $140       $0
         Wisconsin             Dry               $135          $135       $0
Valero Energy Corp, San Antonio Texas      (210-345-3362)   (210-345-3362)
         Indiana               Dry               $155          $155       $0
         Iowa                  Dry               $145          $145       $0
         Minnesota             Dry               $150          $150       $0
         Nebraska              Dry               $150          $150       $0
         Ohio                  Dry               $160          $160       $0
         South Dakota          Dry               $155          $155       $0
         California                              $200          $200       $0
Western Milling, Goshen, California (559-302-1074)
         California            Dry               $210          $215       -$5
*Prices listed per ton.
         Weekly Average                          $144          $145       -$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                                      1/31/2019      $3.7650   $134.46
Soybean Meal                              1/31/2019      $310.00
DDG Weekly Average Spot Price             $144.00
DDG Value Relative to:                                   1/31      1/24
Corn                                                     107.09%   107.69%
Soybean Meal                                             46.45%    46.43%
Cost Per Unit of Protein:
DDG                                                      $5.33     $5.37
Soybean Meal                                             $6.53     $6.57
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

******************************************************************************
Grain Shipments Lead 2018 Great Lakes Seaway Navigation Season

   In a press release on Jan. 17, 2019, the Great Lakes Seaway Partnership 
noted that, "With total cargo shipments of 40.9 million metric tons during the 
2018 navigation season, St. Lawrence Seaway traffic increased nearly 7% 
year-over-year. Additionally, total vessel transits were up nearly 6% over 
2017."

   The St. Lawrence Seaway Management Corporation (SLSMC) said much of the 
credit for the increase in tonnage can be given to healthy movements of grain, 
the best on record since the turn of the century. "Marketing efforts under the 
"Highway H2O" initiative served as a catalyst to spur increased movements of a 
broad range of cargoes including grain, road salt, stone, cement, gypsum (a 
soft sulfate mineral) and refined fuels."

   Hwy H2O is a 3,700-kilometer marine highway that offers shippers direct 
access to the commercial, industrial and agricultural heartland of North 
America and includes the five Great Lakes and the St. Lawrence Seaway. 

   Click this link to read about Hwy H2O: http://hwyh2o.com/home/

   "Total tonnage on the St. Lawrence Seaway exceeded the five-, 10- and 
15-year averages, making 2018 an exceptionally strong shipping season -- the 
best in over a decade," said Craig Middlebrook, deputy administrator of the 
U.S. Saint Lawrence Seaway Development Corporation. "In particular, we were 
pleased to see heightened activity on the seaway in December. Overall gains in 
year-over-year commodity increases were widespread, most notably in U.S. grain 
export trade. The investments in seaway infrastructure and technology are 
achieving greater efficiencies for our customers and enhancing the binational 
waterway's global competitiveness."

   The following top 10 performing cargoes sustained Seaway traffic well above 
the five-year average:


Cargo                     Metric Tons            Percent Increase*
1. Grain                  12.1 million           20%
2. Dry Bulk               10.7 million           3%
3. Liquid Bulk            4.5 million            22%
4. Salt                   3.5 million            5%
5. Coal                   2.5 million            12%
6. Cement                 1.9 million            14%
7. Steel Slabs            750,000                53%
8. Stone                  564,000                24%
9. Gypsum                 499,000                13%
10. Asphalt               383,000                50%

   *All performance metrics above based on cargo traffic for the St. Lawrence 
Seaway only, excluding interlake traffic on the Great Lakes. Percentage 
increases compared to the same time last year.

   The Seaway is anchored by domestic trade at the Port of Duluth-Superior, 
which operates as a global gateway for bulk cargo entering the system, 
specifically iron ore. The Duluth Seaway Port Authority is also celebrating a 
successful 2018 shipping season on the Great Lakes that ended with the Soo 
Locks closure on Jan. 15. The Port of Duluth-Superior is the largest tonnage 
port on the Great Lakes.

   The Duluth Seaway Port Authority's executive director, Deb DeLuca, said in a 
statement that the season is ending on a strong note. "Through November, grain 
volume was up 22% compared to last year and iron ore was more than 25% above 
the five-year average. While coal shipments are down, iron ore is picking up." 
Another notable event for the Port during the 2018 shipping season was the 
first shipment of soybeans in a decade.

   The grain shipping season came to an end on Dec. 15, 2018 when the Federal 
Rhine was the last saltie (ocean going vessel) to leave the port of 
Duluth-Superior for the season, enabling the ship to clear Seaway locks well 
ahead of Christmas. The 656-foot Federal Rhine loaded 21,300 metric tons of 
durum wheat at the CHS elevator in Superior and is bound for Italy where it 
will be milled and made into pasta, which likely will be packaged and shipped 
back to U.S. grocery stores, according to the Duluth Seaway Port Authority.

   While the Federal Rhine was the last saltie to leave the Port of 
Duluth-Superior for the season, Great Lakes freighters (lakers) would continue 
to move bulk commodities for another month as long as weather and ice 
conditions allowed, since the Poe Lock at Sault Ste. Marie, Michigan, remained 
open until midnight Jan. 15, 2019. 

   More than 4,500 vessels carrying up to 80 million tons of cargo maneuver 
through the Soo locks annually. Iron ore, coal, wheat and limestone are among 
the most frequently carried commodities. Opened in 1969, the Poe Lock is 1,200 
feet long. The MacArthur Lock was opened in 1943 and is 800 feet long. The U.S. 
Army Corps of Engineers (USACE) will perform critical maintenance on the lock 
structures during the winter closure. The MacArthur and Poe locks are 
dewatered, and crews will be busy with a variety of maintenance projects in 
preparation to reopen in March, noted the USACE. The locks are scheduled to 
reopen March 25, 2019, weather permitting.

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

   Follow her on Twitter @MaryCKenn

******************************************************************************
Domestic DDG Prices Lower on Average

   OMAHA (DTN) -- The domestic distillers dried grains average spot price from 
the 40 locations DTN contacted was $3 lower at $145 per ton for the week ended 
Jan. 24 versus the prior week. 

   Spot truck values collected by DTN are steady to lower this week, as some 
buyers have not been active in buying for the past few weeks, expecting the 
prices may move lower than they recently have. The extreme cold and lower 
ethanol plant production may give DDG demand a boost in the next few weeks.

   Informa Economics noted in their weekly DDG update: "Some Iowa hog producers 
view 105% DDG relative value to cash corn as the line in the sand to start 
upping levels in rations. Currently, Iowa DDG prices are sitting near 115% on a 
relative value to cash corn of $3.40 a bushel, which could mean buyers want to 
see another $10-$15 lower DDG prices to bring back demand."

   Based on the average of prices collected by DTN, the value of DDG relative 
to corn for the week ended Jan. 24 was at 107.69%. The value of DDG relative to 
soybean meal was at 46.43%. The cost per unit of protein for DDG was $5.37, 
compared to the cost per unit of protein for soybean meal at $6.57. 

   In their weekly DDGS update, U.S. Grains Council noted that export price 
indications are mostly up this week in response to a combination of 
strengthening demand, tightening supply, and, to some extent, logistics at the 
U.S. Gulf. 

   "February execution is limited but remains available; FOB vessel U.S. Gulf 
for March delivery is at $214 per metric ton (mt). Barge CIF New Orleans prices 
gained strength as well while U.S. rail rates were steady to slightly higher. 
On average, 40-foot containers to Southeast Asian markets were up $5/mt this 
week from last week as merchandisers reported multiple sales to Vietnam."


ALL PRICES SUBJECT TO CONFIRMATION             CURRENT       PREVIOUS   CHANGE
COMPANY  STATE                                1/24/2019      1/17/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
         Missouri              Dry               $165          $165       $0
                               Modified          $85            $85       $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
         Missouri Subject      Dry               $155          $155       $0
                               Wet               $80            $80       $0
CHS, Minneapolis, MN (800-769-1066)
         Illinois              Dry               $145          $145       $0
         Indiana               Dry               $140          $140       $0
         Iowa                  Dry               $130          $136       -$6
         Michigan              Dry               $145          $145       $0
         Minnesota             Dry               $140          $140       $0
         North Dakota          Dry               $140          $140       $0
         New York              Dry               $155          $155       $0
         South Dakota          Dry               $140          $140       $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
         Kansas                Dry               $155          $160       -$5
POET Nutrition, Sioux Falls, SD (888-327-8799)
         Indiana               Dry               $140          $140       $0
         Iowa                  Dry               $143          $145       -$2
         Michigan              Dry               $130          $130       $0
         Minnesota             Dry               $140          $145       -$5
         Missouri              Dry               $158          $160       -$2
         Ohio                  Dry               $142          $145       -$3
         South Dakota          Dry               $147          $150       -$3
United BioEnergy, Wichita, KS (316-616-3521)
         Kansas                Dry               $145          $145       $0
                               Wet               $60            $60       $0
         Illinois              Dry               $150          $150       $0
         Nebraska              Dry               $145          $145       $0
                               Wet               $60            $60       $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
         Illinois              Dry               $140          $150      -$10
         Indiana               Dry               $135          $145      -$10
         Iowa                  Dry               $135          $145      -$10
         Michigan              Dry               $135          $145      -$10
         Minnesota             Dry               $135          $145      -$10
         Nebraska              Dry               $140          $150      -$10
         New York              Dry               $155          $165      -$10
         North Dakota          Dry               $170          $170       $0
         Ohio                  Dry               $145          $155      -$10
         South Dakota          Dry               $140          $160      -$20
         Wisconsin             Dry               $135          $140       -$5
Valero Energy Corp, San Antonio Texas      (210-345-3362)   (210-345-3362)
         Indiana               Dry               $155          $155       $0
         Iowa                  Dry               $145          $145       $0
         Minnesota             Dry               $150          $150       $0
         Nebraska              Dry               $150          $150       $0
         Ohio                  Dry               $160          $160       $0
         South Dakota          Dry               $155          $155       $0
         California                              $200          $200       $0
Western Milling, Goshen, California (559-302-1074)
         California            Dry               $215          $212       $3
*Prices listed per ton.
         Weekly Average                          $145          $148       -$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      1/24/2019   $3.7700      $134.64
                             Soybean Meal      1/24/2019   $312.30
            DDG Weekly Average Spot Price        $145.00
                                  DDG Value Relative to:   1/24        1/17
                                                    Corn   107.69%      109.05%
                                            Soybean Meal    46.43%       47.41%
                               Cost Per Unit of Protein:
                                                     DDG     $5.37        $5.48
                                            Soybean Meal     $6.57        $6.57
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

******************************************************************************
DDG Prices Lower Again

   OMAHA (DTN) -- The domestic distillers dried grains average spot price from 
the 40 locations DTN contacted was $5 lower at $148 per ton for the week ended 
Jan. 17 versus the prior week. 

   Spot truck values are lower and buyers have moved away from DDG, resulting 
in lower inclusion rates. The weekly EIA report showed ethanol plant production 
increased 51,000 barrels per day (bpd) to 1.051 million bpd, changing the 
course of lower production reports seen since the last week of November. This 
has added more DDG supplies in the market and the market is adjusting prices to 
keep product moving.

   Based on the average of prices collected by DTN, the value of DDG relative 
to corn for the week ended Jan. 17 was at 109.05%. The value of DDG relative to 
soybean meal was at 47.41%. The cost per unit of protein for DDG was $5.48, 
compared to the cost per unit of protein for soybean meal at $6.57. 

   Informa Economics reported on Jan. 14 that U.S. exports of DDGS to Thailand, 
a key U.S. market, were halted over fumigation issues. The fumigation situation 
cropped up after the Khapra beetle was found in shipments of U.S. DDGS in 
August and again in November, reports said. Merchandisers noted that, 
currently, Thailand is sticking with its new fumigation regulation of Methyl 
Bromide treatment at 70 degrees Fahrenheit, while the U.S. side wants to use 
phosphine. Vietnam also halted imports of U.S. DDGS until the two sides work 
out protocols on fumigation of shipments. The U.S. Census Bureau listed 
Thailand as one of the top four destinations of U.S. DDGS for the month of 
October 2018.


ALL PRICES SUBJECT TO CONFIRMATION       CURRENT     CURRENT  CHANGE
                                                      1/10/
COMPANY STATE                           1/17/2019      2019
Bartlett and Company, Kansas City, MO (816-753-6300)
        Missouri            Dry            $165        $165     $0
                            Modified       $85         $85      $0
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
        Missouri Subject    Dry            $155        $160    -$5
                            Wet            $80         $82     -$2
CHS, Minneapolis, MN (800-769-1066)
        Illinois            Dry            $145        $145     $0
        Indiana             Dry            $140        $142    -$2
        Iowa                Dry            $136        $145    -$9
        Michigan            Dry            $145        $145     $0
        Minnesota           Dry            $140        $150    -$10
        North Dakota        Dry            $140        $150    -$10
        New York            Dry            $155        $155     $0
        South Dakota        Dry            $140        $150    -$10
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
        Kansas              Dry            $160        $170    -$10
POET Nutrition, Sioux Falls, SD (888-327-8799)
        Indiana             Dry            $140        $150    -$10
        Iowa                Dry            $145        $155    -$10
        Michigan            Dry            $130        $130     $0
        Minnesota           Dry            $145        $155    -$10
        Missouri            Dry            $160        $173    -$13
        Ohio                Dry            $145        $155    -$10
        South Dakota        Dry            $150        $160    -$10
United BioEnergy, Wichita, KS (316-616-3521)
        Kansas              Dry            $145        $145     $0
                            Wet            $60         $60      $0
        Illinois            Dry            $150        $150     $0
        Nebraska            Dry            $145        $145     $0
                            Wet            $60         $60      $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
        Illinois            Dry            $150        $145     $5
        Indiana             Dry            $145        $145     $0
        Iowa                Dry            $145        $155    -$10
        Michigan            Dry            $145        $145     $0
        Minnesota           Dry            $145        $145     $0
        Nebraska            Dry            $150        $160    -$10
        New York            Dry            $165        $165     $0
        North Dakota        Dry            $170        $170     $0
        Ohio                Dry            $155        $155     $0
        South Dakota        Dry            $160        $160     $0
        Wisconsin           Dry            $140        $140     $0
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
        Indiana             Dry            $155        $150     $5
        Iowa                Dry            $145        $150    -$5
        Minnesota           Dry            $150        $165    -$15
        Nebraska            Dry            $150        $160    -$10
        Ohio                Dry            $160        $160     $0
        South Dakota        Dry            $155        $155     $0
        California                         $200        $205    -$5
Western Milling, Goshen, California (559-302-1074)
        California          Dry            $212        $216    -$4
*Prices listed per ton.
        Weekly Average                     $148        $153    -$5
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   1/17/2019 $3.8000   $135.71
                    Soybean Meal   1/17/2019 $312.20
   DDG Weekly Average Spot Price     $148.00
                      DDG Value Relative to:  1/17     1/10
                                        Corn 109.05%   113.86%
                                Soybean Meal  47.41%    48.94%
                   Cost Per Unit of Protein:
                                         DDG   $5.48     $5.67
                                Soybean Meal   $6.57     $6.58
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

******************************************************************************
Positive Train Control: Did Railroads Meet 2018 Deadline?

   In late 2015, Congress extended the deadline for positive train control 
(PTC) implementation by at least three years to Dec. 31, 2018, with a possible 
extension to Dec. 31, 2020, if a railroad completed certain statutory 
requirements necessary to obtain an extension, according to the Federal 
Railroad Administration (FRA).

   On Nov. 21, 2018, the FRA released the 2018 Quarter 3 Positive Train Control 
data, showing railroads' continued progress toward meeting the 2018 year-end 
deadline for fully implementing PTC systems or qualifying for an alternative 
schedule. 

   Here is a link to the third quarter data: https://www.fra.dot.gov/app/ptc

   "The progress made over the last year is a testament to what can be 
accomplished with proper focus and attention. We encourage any railroads 
seeking an alternative schedule to submit their formal requests in a timely 
fashion," said FRA Administrator Ronald L. Batory in the press release.

   According to the FRA, Quarter 3 data as of Sept. 30, 2018, showed 24 
railroads had installed 100% of the PTC system hardware required for 
implementation. Eleven other railroads had installed between 95% and 99% of the 
required hardware. "All railroads using radio spectrum-based PTC have acquired 
sufficient spectrum. In part due to efforts from FRA, Quarter 3 data shows a 
67% decrease in the number of "at-risk" railroads, down to five from 15 at the 
end of 2017. This is also a 44% decrease in at-risk railroads since Quarter 2 
of 2018," noted the FRA.

   FRA considers any railroad that had installed less than 95% of its PTC 
system hardware to be at risk of not having met either the congressionally 
mandated deadline of Dec. 31, 2018, or the statutory criteria necessary to 
qualify for an alternative schedule. Hardware installation is an initial phase 
of implementation, and only one of six statutory criteria required for an 
alternative schedule, which has a deadline of no later than Dec. 31, 2020.

   In a statement released on their website on Dec. 31, the United States 
Department of Transportation (DOT) said that, "The 41 railroads required by 
Congress to implement positive train control (PTC) systems by Dec. 31, 2018, 
have submitted documentation that they assert is sufficient to meet the 
statutory requirements for system activation or the statutory requirements to 
qualify for an alternative schedule ("extension") for up to two additional 
years to complete full implementation."

   AMTRAK CLOSE TO COMPLIANCE

   On Dec. 18, 2017, a southbound Amtrak Cascades train missed a curve and 
partly derailed onto Interstate 5 near Tacoma, Washington. The derailment and 
crash killed three passengers and injured 70 people that were either train 
passengers or were in cars on Interstate 5 below the overpass. So far, no 
official cause of the accident has been released, but according to reports, the 
train entered a curve at 78 miles per hour (mph), well above the 30 mph speed 
limit. 

   Had PTC been installed, the system may have stopped the accident from 
happening, because it is designed to automatically stop a train before certain 
accidents occur. In particular, PTC is designed to prevent train-to-train 
collisions, derailments caused by excessive train speed and/or train movements 
through misaligned track switches.

   Amtrak said on their website that all Amtrak-owned or controlled track will 
have Positive Train Control (PTC) in operation Jan. 1, 2019, except 
approximately four miles of slow-speed track in the complex Chicago and 
Philadelphia terminal areas. "We expect to have the Philadelphia area complete 
this winter and Chicago in early spring. Also, the 135-mile segment of track 
from Dearborn to Kalamazoo, Michigan, has PTC installed and in the testing 
phase, however, final vendor and regulatory approvals will occur in late 
January." 

   Amtrak has also said they are working closely with the "tenant" railroads 
and are putting them through the same safety risk assessment that they put 
themselves through. Here is a link to Amtrak's update:

   https://media.amtrak.com/positive-train-control/

   BNSF FIRST U.S. CLASS I RAILROAD TO COMPLETE IMPLEMENTATION 

   Burlington Northern Sante Fe Railway Company (BNSF) announced in December 
2017 that it had fully installed PTC and was operating under PTC on all 
mandated subdivisions well ahead of the year-end deadline. However, in mid-June 
2018, they submitted a request to the DOT for a two-year extension of the PTC 
deadline, due to the FRA current interpretation of the law that "full 
implementation status cannot be achieved until all non-BNSF trains and/or 
equipment operating on its PTC-equipped lines are also PTC compliant," 
according to the BNSF website. The FRA approved the extension request in 
September 2018.

   "We are actively working with each of the approximately 30 railroads with 
which we need to be interoperable to identify their needs and how we can be of 
help. This assistance ranges from technical, operation and regulatory advice to 
a variety of services such as back office hosting and crew training," noted the 
BNSF. 

   The BNSF stated that they have achieved interoperability, and activated PTC 
for several passenger railroads, including Amtrak, Metra, Metrolink, Northstar 
and Sound Transit where they run on BNSF. "This is an important achievement 
since one of the primary purposes of PTC is to provide protection where rails 
run freight and passenger service. We have also accomplished interoperability 
with short line roads Montana Rail Link, Louisiana & Delta Railroad and Dakota, 
Missouri Valley and Western Railroad." Interoperability is defined as "the 
ability of computer systems or software to exchange and make use of 
information." (dictionary.com)

   The DOT in their Dec. 31, 2018, press release said that, "based upon 
railroad self-reporting, as of the third quarter of 2018, the percentage of 
track segments completed is 94% for freight railroads and 77% for passenger. 
This compares to 20% for freight and 13% for passenger as of the third quarter 
of 2016. 2018 yielded many positive results and highlighted great collaboration 
between industry and government. However, significant work remains to be done 
in order to ensure additional field testing, interoperability and full 
implementation arrive as soon as possible."

   Here is a link to the DOT statement: 

   
https://www.transportation.gov/briefing-room/statement-positive-train-control-im
plementation

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

   Follow her on Twitter @MaryCKenn

******************************************************************************
DDG Prices Continue Lower

   OMAHA (DTN) -- The domestic distillers dried grains average spot price from 
the 40 locations DTN contacted was $7 lower at $153 per ton for the week ended 
Jan. 10 versus the prior week. 

   Spot truck values are lower once again as demand has slowed. Feeders have 
reformulated rations to include more soymeal after DDG prices rose in December, 
causing sellers to lower prices in order to move product. Even with another 
week of lower plant production reported by the Energy Information 
Administration, supplies are not an issue right now.

   Based on the average of prices collected by DTN, the value of DDG relative 
to corn for the week ended Jan. 10 was at 113.86%. The value of DDG relative to 
soybean meal was at 48.94%. The cost per unit of protein for DDG was $5.67, 
compared to the cost per unit of protein for soybean meal at $6.58. 

   Informa Economics reported that rumors suggest China may have purchased an 
export cargo of DDGS from the U.S. in late 2018. "The price behavior doesn't 
seem to be corroborating that rumor, with cheaper prices not reflecting much 
optimism on significant purchases from China," the group stated. 

   Due to the government shutdown, there has been no shipment data released by 
the government, so there is no way to confirm if that did or did not happen. It 
would be interesting though if they did buy, given that stiff penalties still 
remain on U.S. DDGS imports in to China, along with the higher prices we saw in 
late November in to December.


ALL PRICES SUBJECT TO CONFIRMATION       CURRENT     Previous CHANGE
COMPANY STATE                           1/10/2019    1/3/2019
Bartlett and Company, Kansas City, MO (816-753-6300)
        Missouri            Dry            $165        $180    -$15
                            Modified       $85         $90     -$5
Show Me Ethanol LLC, Carrollton, MO (660-542-6493)
        Missouri Subject    Dry            $160        $170    -$10
                            Wet            $82         $90     -$8
CHS, Minneapolis, MN (800-769-1066)
        Illinois            Dry            $145        $150    -$5
        Indiana             Dry            $142        $150    -$8
        Iowa                Dry            $145        $152    -$7
        Michigan            Dry            $145        $145     $0
        Minnesota           Dry            $150        $150     $0
        North Dakota        Dry            $150        $155    -$5
        New York            Dry            $155        $155     $0
        South Dakota        Dry            $150        $160    -$10
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
        Kansas              Dry            $170        $170     $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
        Indiana             Dry            $150        $162    -$12
        Iowa                Dry            $155        $175    -$20
        Michigan            Dry            $130        $140    -$10
        Minnesota           Dry            $155        $165    -$10
        Missouri            Dry            $173        $185    -$12
        Ohio                Dry            $155        $160    -$5
        South Dakota        Dry            $160        $165    -$5
United BioEnergy, Wichita, KS (316-616-3521)
        Kansas              Dry            $145        $150    -$5
                            Wet            $60         $60      $0
        Illinois            Dry            $150        $160    -$10
        Nebraska            Dry            $145        $150    -$5
                            Wet            $60         $60      $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
        Illinois            Dry            $145        $155    -$10
        Indiana             Dry            $145        $155    -$10
        Iowa                Dry            $155        $165    -$10
        Michigan            Dry            $145        $155    -$10
        Minnesota           Dry            $145        $160    -$15
        Nebraska            Dry            $160        $170    -$10
        New York            Dry            $165        $175    -$10
        North Dakota        Dry            $170        $170     $0
        Ohio                Dry            $155        $155     $0
        South Dakota        Dry            $160        $170    -$10
        Wisconsin           Dry            $140        $145    -$5
Valero Energy Corp, San Antonio Texas (210-345-3362) (210-345-3362)
        Indiana             Dry            $150        $160    -$10
        Iowa                Dry            $150        $150     $0
        Minnesota           Dry            $165        $160     $5
        Nebraska            Dry            $160        $160     $0
        Ohio                Dry            $160        $160     $0
        South Dakota        Dry            $155        $160    -$5
        California                         $205        $225    -$20
Western Milling, Goshen, California (559-302-1074)
        California          Dry            $216        $225    -$9
*Prices listed per ton.
        Weekly Average                     $153        $160    -$7
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   1/10/2019 $3.7625   $134.38
                    Soybean Meal   1/10/2019 $312.60
   DDG Weekly Average Spot Price     $153.00
                      DDG Value Relative to:  1/10      1/3
                                        Corn 113.86%   117.97%
                                Soybean Meal  48.94%    51.17%
                   Cost Per Unit of Protein:
                                         DDG   $5.67     $5.93
                                Soybean Meal   $6.58     $6.58
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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