Strong ethanol run rates and weakness in CBOT futures/other feedstuffs markets are weighing on domestic DDGS values. FOB ethanol plant prices are down $13/MT this week with domestic buyers continuing their “hand to mouth” procurement strategy. The DDGS/cash corn ratio is 0.80 this week, down from the prior week and below the three-year average of 1.13. The DDGS/Kansas City soymeal ratio is steady with the prior week at 0.54 and above the three-year average of 0.46.
Exporters report solid daily interest from international buyers, but also that purchases have slowed amid heightened market volatility. Prices are generally weaker this week with Barge CIF NOLA offers down $11/MT for July while FOB Gulf offers are down $15-19/MT. A dip in prices seems to have spurred interest from buyers in Southeast Asia, and exporters report increasing activity for that market. Prices for 40-foot containers to Southeast Asia are down $12/MT on average this week at $320/MT.