Cash corn prices are steady across the U.S. this week, with basis firming to 24 cents under July futures despite another Thursday rally in the futures market. Prices for DDGS FOB ethanol plants are stabilizing, down just $2.50/MT this week while Kansas City soymeal prices are down an equal amount. DDGS are priced at 129 percent of cash corn values, down from last week and falling from five-year highs of 186 percent. The DDGS/soymeal price ratio is 0.48, down one percent from the prior week and above the three-year average of 0.42.
DDGS prices are firming as supplies tighten and both domestic and export demand increase. Merchandisers say the market hit its bottom two weeks ago and most expect prices to trend higher in the coming week. DDGS are increasingly competitive in feed rations, which industry sources say will attract domestic demand and increase export offers.
Barge CIF NOLA rates are up $5/MT for July shipment and are steady/up $1 for August and September positions, reflecting stronger domestic demand. FOB NOLA offers are mixed, with offers for July shipment falling $2/MT this week while deferred offers are up $1/MT. Prices for 40-foot contains to Southeast Asia are steady this week at $230/MT for July/August shipment.