U.S. DDGS values continue to firm with FOB ethanol plant prices up$10/MT this week. Brokers report strong domestic demand from the livestock feeding industry is not expected to peak until Q1 2021. The demand continues to underpin the DDGS market. Kansas City soymeal values are up $10/MT this week as CBOT futures and exports of that commodity remain strong. DDGS are priced at 124 percent of cash corn prices, up from the prior week and above the three-year average of 109 percent. DDGS are valued at 44 percent of soymeal prices, up from the prior week and above the three-year average of 42 percent.
DDGS merchandisers report the barge market for November and December continues to firm based on higher demand from exporters. Skyrocketing barge freight rates due to strong export demand for nearly every agricultural product is helping prices firm as well. Industry sources expect rising barge freight to push more DDGS into the domestic market. Barge rates are expected to continue rising into January, February, and March.
Barge CIF NOLA values are up $3/MT for spot positions and early 2021 positions have risen even more. FOB Gulf indications are wide-ranging this week but are up $8-9/MT for spot shipment. Exporters report wide bid/ask spreads for export DDGS and that purchases are being made at offers and sales are made at bids, but that trades “don’t really seem to move the brackets.” Lower freight rates have allowed offers for 40-foot containers to Southeast Asia to retreat a little this week, with the average offer hitting $288/MT.