U.S. DDGS values continue to rally amid lower production and strong demand for feedstuffs and agricultural commodities. FOB ethanol plant values are up $7.50/MT this week even as Kansas City soymeal values have moved $23/MT lower on weakness in soymeal futures. The DDGS/cash corn price ratio currently sits at 118 percent, up from last week and above the three-year average of 110 percent. The DDGS/soymeal ratio is up from last week at 48 percent and is above the three-year average of 42 percent. So far in the 2020/2021 marketing year, FOB Gulf soymeal prices are up 40 percent while FOB Gulf DDGS values have risen 47 percent.
Industry sources say the volatility in corn and soybean markets and concerns with container freight rates are complicating forward sales. Reportedly, container lines are hesitant to lock in rates more than four weeks forward, which is making DDGS sales from March forward more difficult. Southeast Asian buyers still need to purchase a large portion of their Q1/early Q2 needs but are being cautious amid rising commodity prices.
Barge CIF NOLA values are up $3-4/MT this week while FOB NOLA offers have declined $4-6/MT for February and March shipment, decreasing netbacks to merchandisers looking to move product on the river. U.S. rail rates are down $2-3/MT this week while offers for 40-foot containers to Southeast Asia are mostly steady at $349-350/MT.