U.S. DDGS prices are $6/MT below last week’s values despite a second weekly reduction in ethanol run rates. Buyers remain committed to “hand to mouth” purchasing strategies as most feedstuff markets are trending sideways. Kansas City soymeal prices are up $10/MT this week, pushing the DDGS/Kansas City soymeal ratio lower to 0.43, down from 0.45 last week. The DDGS/cash corn ratio is lower this week at 0.68, down from 0.72 last week and the three-year average of 1.13. The DDGS/cash corn ratio is at its lowest level since at least 2016.
Export demand for DDGS has picked up this week with Barge CIF NOLA offers up $10/MT and FOB Gulf offers up $16/MT for August shipment and up $10-13/MT for deferred positions. August DDGS are offered at $236/MT this week with October/November offers near $265/MT. The Southeast Asia market has been active with early-week trades in the low $300’s supporting offers. Offers for 40-foot containers for shipment to Southeast Asia are up $11/MT this week at $311.