DDGS prices are higher in the wake of USDA’s Thursday reports. Immediately following USDA’s Prospective Plantings report, traders and merchandisers reported asking prices jumped higher in sympathy with higher corn values. Barge CIF NOLA prices are $2/MT higher while FOB NOLA prices are $6/MT higher on average compared to last week. The net effect of these two prices is again increasing netbacks for merchandisers with river access.
FOB ethanol plant DDGS are $1/MT higher while Kansas City soybean meal values have increased $3/MT. Consequently, the unit cost advantage of DDGS versus soybean meal increased 21 cents this week to $1.53/protein unit. With the USDA’s latest Hogs and Pigs report showing breeding hog inventories up 2 percent from last year and market hog numbers 3 percent higher, DDGS should see additional consumption coming from the hog sector this spring/summer.
Internationally, DDGS prices are higher as well. Prices for DDGS CIF Southeast Asia are up $2/MT this week with prices for product destined for Japan, Indonesia, and Malaysia leading the way (up $7, $6, and $5.5/MT, respectively). With corn futures likely to remain elevated in the near term, international buyers will likely have to meet higher asking prices for the next few weeks.