DDGS prices were steady this week, and influencing markets including corn and soybean meal also saw little price action. Kansas City soybean meal prices were equal to last week’s prices while cash corn prices ticked up a penny. Consequently, DDGS found little fundamental support or pressure and traded sideways.
DDGS FOB ethanol plant prices increased $1/short ton this week and are priced at 85 percent of cash corn and 34 percent of Kansas City soybean meal. The slight increase in DDGS prices eroded the perprotein unit cost advantage of DDGS versus soybean meal. Currently, the pro-protein unit cost of DDGS is $2.29 less than soybean meal. On the export market, prices for DDGS Barge CIF NOLA increased $2.50/MT this week as better river navigation conditions increased barge rates. Prices for DDGS FOB Gulf fell $1/MT as export demand remains weak and below market offers. International buyers are claiming destination pricing is offered at below-replacement prices but merchandisers are unable to confirm with any U.S. sources.
Merchandisers are reporting an average price increase of $4/MT for 40-foot containers destined for Southeast Asia this week. Prices for DDGS destined for Japan increased significantly while most destinations saw increases between $2-4/MT. Merchandisers are reporting offers are increasing and there is a carry in the market for both DDGS and freight.