U.S. DDGS prices are up $5.50/MT this week, holding steady near $200/MT and remaining relatively insulated from the recent volatility in soymeal prices. Ethanol run rates remain strong, which is pushing additional product into the market, but firm domestic demand is keeping values supported. Kansas City soymeal prices are down $10/MT this week as the market recovers from its L-lysine shortage-induced rally. The Kansas City soymeal/DDGS ratio fell to 0.48 this week, up from 0.45 last week and above the 3-year average of 0.47. The DDGS/cash corn ratio reached 0.89 this week, up from 0.85 last week and below the 3-year average ratio of 1.08.
Brokers and exporters report that DDGS demand is quiet on the export market following the U.S. Thanksgiving holiday. Barge CIF NOLA prices are down $10/MT since the last Market Perspectives report while FOB NOLA offers are down $3-4/MT for Q1 2022 positions. U.S. rail rates are similarly down $3-5/MT from two weeks ago while offers for 40-foot containers to Southeast Asia are steady/$3 lower at $354/MT this week.