DDGS values are another $5/MT higher this week as a strong rally in soymeal is supporting broader feedstuff values. Ethanol output rose 5.8 percent last week to the highest level in the past 51 weeks. Despite the increased DDGS supply, domestic and export demand remains strong, which is supporting values.
The DDGS/Kansas City soymeal ratio is at 0.49 this week, down from last week and just below the three-year average of 0.50. The DDGS/cash corn ratio edged higher this week to 1.03 percent, still below the three-year average of 1.06.
On the export market, Barge CIF NOLA prices reversed last week’s weakness and are trading $17-19/MT higher with December offers at $333/MT. Offers for FOB NOLA DDGS are similarly higher this week at $340 for spot shipment while Q1 2023 positions are up $7-10/MT. Offers for 40-foot containers to Southeast Asia are up $18-21/MT this week with spot values averaging $409/MT.