U.S. DDGS prices posted their fifth consecutive week of gains and rose $2.50/MT as ethanol plants slowed run rates. Recent strength in physical in soymeal prices has also offered support to the DDGS market. The DDGS/soymeal ratio is at 0.47 this week, up from 0.46 last week and equal to the three-year average of 0.47. This week’s DDGS/cash corn ratio is at 0.89, down from 0.91 last week and below the three-year average of 1.07.
Persistent cold weather and logistical difficulties continue to support rail and barge markets. U.S. rail rates are up $4-5/MT this week with rates to Laredo, Texas seeing the largest increase ($7/MT) for spot positions. The Barge CIF NOLA market is similarly higher, up $6/MT for spot and up $7/MT for March positions, while FOB Gulf offers are up $4-5/MT.
Prices for DDGS containers to Southeast Asia continue to grind higher, rising $3-5/MT for February through April positions. International buyers continue to show steady interest in U.S. product with recent declines in freight values helping bolster inquiries and purchases. Prices for 40-foot containers into Southeast Asia are averaging $368/MT so far this week.