DDGS values are $5-7/MT higher this week as reduced run rates from the seasonal ethanol plant maintenance season restrict supplies. Feedstuffs markets are showing interesting dynamics right now with the DDGS market in a carry from old to new crop while other products (e.g., soymeal) are in an inverse. This is prompting DDGS buyers to be more active in the spot market and show less interest in the deferred positions. The DDGS/Kansas City soymeal ratio reached 0.52 this week, above the three-year average of 0.49, while the DDGS/cash corn ratio rose to 1.03 this week, below the three-year average of 1.06.
On the export market, Barge CIF NOLA offers are $12-16/MT higher this week as logistics during the new crop harvest season are becoming tight. FOB NOLA offers are up $11-14/MT and U.S. rail delivered DDGS are generally $5-10/MT higher. The ocean freight market’s volatility this week has left the containerized DDGS market essentially flat, but offers for product into the Indonesia and Malaysia are down $5-7/MT. The average offer for containerized DDGS to Southeast Asia is down $6/MT this week at $406 for October shipment.