Cash corn prices are 5 cents/bushel lower across the U.S. this week following the pressure in corn futures, though basis levels remain firm. Prices for DDGS FOB ethanol plants are steady despite a $6/MT move lower in Kansas City soymeal prices. DDGS are priced at 106 percent of cash corn values, steady with last week and equal to the three-year average. The DDGS/soymeal price ratio is 0.46, unchanged from last week and above the three-year average.
The U.S. DDGS market is mixed this week with merchandisers reporting active trade on Thursday. Barge CIF NOLA and FOB NOLA values are firmer (up $1-3/MT) versus last week while rail-delivered prices are $3/MT lower on average. Some merchandisers report that the Canadian National Railway strike is affecting logistics and prices for some locations.
Overseas buyers have been actively securing U.S. DDGS and prices are firmer for most destinations. Prices for DDGS shipped to Indonesia and South Korea are showing the strongest gains, up $5-6/MT. The average price increase for product destined for Southeast Asia is up $2/MT this week to $240 for December shipment.