U.S. DDGS are steady this week with cold weather in the Midwest and high natural gas prices curtailing production and supplies. Lower soymeal futures and physical prices are offsetting these effects, however, leaving FOB ethanol plant prices steady/slightly higher. The DDGS/cash corn price ratio is up from the prior week at 119 percent and above the three-year average of 110 percent. The DDGS/soymeal price ratio stands at 0.52, up from the prior week and above the three-year average of 0.42.
Brokers and merchandisers report that spot prices remain elevated – if offers can be obtained – due to logistics issues along the rivers. Demand remains steady and brokers report a solid round of business has been done this week. Barge CIF NOLA offers are up $2/MT for March/April shipment and FOB Gulf offers are $2/MT higher for the same time period. U.S. rail rates are slightly lower while 40-foot containers to Southeast Asia are offered $2-3/MT lower than last week.
One source noted that the roughly $50 inverse in soymeal futures and an 80-cent inverse in corn futures from March to December is creating a similar inverse in DDGS prices. March FOB Gulf offers average $324/MT while October/November/December prices are near $265/MT.