Prices remain firm with buyers stepping up to pay asking prices. FOB ethanol plant prices hit $127/MT this week as demand remains strong. FOB ethanol plant DDGS are valued at 42 percent of Kansas City soybean meal prices and 115 percent of cash corn. On a per-protein unit basis, DDGS are $1.31 cheaper than soybean meal, with their advantage losing $0.30 this week. Rising soybean meal prices have increased demand for DDGS in feed rations but a weaker soy complex may push some DDGS from domestic use to international destinations.
Barge CIF NOLA prices rose to $188/MT this week while FOB Gulf prices climbed to $200, the first-time prices have reached such levels since July 2016. Prices for 40-foot containers to Southeast Asia are stronger this week as well, though gains were more muted than those in the FOB Gulf market. DDGS CIF Southeast Asia averaged $219/MT this week, up $4 from last week. Product destined for Bangladesh (up $6/MT) and Myanmar (up $5/MT) experienced the largest price increases, while other destinations reported $3-4/MT gains. Some merchandisers are hearing strong buying interest from Vietnam, where prices rose $3/MT this week