Weakness in corn futures has pressured bids for DDGS. Merchandisers report most ethanol plants have sold most of their June supplies but are uncovered for late summer months. Spot offers have become aggressive due to slow railcar logistics that are causing some plants to run short on storage room.
FOB ethanol plant prices are $1.50/MT lower while Kansas City soybean meal values are down $3/MT. DDGS continue holding a $1.34/protein-unit cost advantage over soybean meal with the ethanol co-product’s comparative value increasing this week.
Barge CIF NOLA prices are $10/MT lower for June shipments because of the logistics constraints. On the export markets, FOB NOLA prices fell $1/MT while CNF Southeast Asia prices were mostly steady. June shipments to Asia (CNF prices) rose $1/MT while July/August shipment values were steady.