Cash corn prices are lower across the U.S. this week, with basis levels remaining mostly steady. The average U.S. basis is still 25 cents under May futures (-25K) this week, equal with the prior week and up from -73K this time last year. Prices for DDGS FOB ethanol plants are sharply higher this week, up $24/MT while Kansas City soymeal prices have continued their pullback. DDGS are priced at 160 percent of cash corn values, up from last week and above the three-year average of 106 percent. The DDGS/cash corn ratio is at its highest level since 2016. The DDGS/soymeal price ratio is 0.56, up from the prior week and above the three-year average of 0.42.
Merchandisers report ongoing short covering in the CIF market for April and that while demand is strong heading into April, logistics are tightening quickly. Industry sources report that some April sales have been rolled back to May to accommodate this. FOB NOLA offers are up $7/MT this week for April shipment and up $15/MT for May. U.S. rail rates are slightly lower while prices for 40-foot containers to Southeast Asia are up $1-2/MT for spring positions.