Cash corn prices are 2 cents/bushel lower across the U.S. this week following the pressure in corn futures, though basis levels are steady/firmer. Prices for DDGS FOB ethanol plants are steady/slightly higher with Kansas City soymeal prices even with last week. DDGS are priced at 106 percent of cash corn values, up from last week and equal to the three-year average. The DDGS/soymeal price ratio is 0.46, down from last week but above the three-year average.
The U.S. DDGS market is higher this week while international prices are slightly lower for spot shipments. Barge CIF NOLA prices are $6-9/MT higher while FOB NOLA DDGS are up $3-4/MT. U.S. rail rates are $4/MT higher on average with this week’s winter storm complicating logistics.
Internationally, merchandisers report that Indonesia and Vietnam remain active buyers with several shipments secured for December and January. South Korean buyers have reportedly been looking for product but bids from that country are below firm asking prices. On average, 40-foot containers to Southeast Asia are down $1/MT for December shipment while deferred positions are steady.