U.S. DDGS prices are down $8.50/MT this week as rising freight rate continues to push product into the domestic market. Kansas City soymeal prices are up $4/MT this week, putting the DDGS/Kansas City soymeal ratio at 0.53, down from last week and above the three year-average of 0.47. The DDGS/cash corn ratio is lower this week at 0.98, down from 1.03 last week but below the three-year average of 1.09.
On the export market, DDGS values are higher with sellers accounting for higher freight rates. Barge CIF NOLA rates are up $6-7/MT for November/December shipment while FOB NOLA offers are up $4-5/MT. U.S. rail rates are higher as well with offers for product into Lethbridge, Alberta up $8/MT this week.
Offers for containerized DDGS to Southeast Asia are spotty with brokers amid the uncertainty in freight rates. Bid/ask spreads are wide this week with few trades confirmed so far. On average, offers are up $1/MT at $348/MT this week.
Please note that FOB Gulf markets will likely be more volatile than normal as the industry works to recover full capacity in New Orleans area export facilities. There are significant questions about elevation capacity and availability and the DDGS market will have to compete with other grains as the U.S. new crop harvest approaches. Consequently, both flat prices and spreads versus other markets may see greater than normal volatility.