U.S. DDGS values continue to rally amid strong domestic and international demand offset by falling production rates. FOB ethanol plant offers are up $9.00/MT from the prior week, averaging $212/MT. While soymeal values have moderated this week (down $13/MT), their recent $100/MT fall rally has helped support DDGS prices. The DDGS/soymeal ratio currently sits at 0.49, up from the prior week and above the three-year average of 0.42. The DDGS/cash corn ratio is near 133% this week, up from the prior week and above the three-year average of 109 percent.
After quiet trading last week, the DDGS market is mixed as buyers and sellers work within a wide bid/ask spread to conduct business. Generally, rail-delivered prices are $2-3/MT firmer this week but offers for DDGS delivered to Kansas City, MO or Elwood, IL are down slightly. Barge CIF NOLA offers are steady for spot positions but down $3-4/MT for Q1 2021 positions. December FOB NOLA offers are up $2/MT while January and February offers are down $1/MT at $284 and $283, respectively. Indications for 40-foot containers to Southeast Asia are widely mixed this week but are averaging $5-7/MT higher at $316-318 for December/January positions.