DDGS Weekly Market Report – April 9, 2020

Cash corn prices are mostly steady across the U.S. this week, with basis weakening slightly. Prices for DDGS FOB ethanol plants are continuing their rally, rising $17/MT while Kansas City soymeal prices have fallen by an equal amount. DDGS are priced at 177 percent of cash corn values, up from last week and above the three-year average of 106 percent. The DDGS/cash corn ratio remains at its highest level since 2016. The DDGS/soymeal price ratio is 0.65, up from the prior week and above the three-year average of 0.42.

DDGS prices are slightly lower this week as buyers have filled near-term needs and as merchandisers/exporters assess what ethanol/DDGS production prospects will be over the coming months. Barge CIF NOLA values are $4/MT lower for spot shipment while FOB Gulf offers are steady-to-$1/MT higher. DDGS delivered via rail to U.S. destinations are $3/MT lower for April delivery and steady for May and June. Offers for 40-foot containers to Asian destinations are slightly lower with values for April shipment falling $6/MT on average. Values for May positions are generally holding their values, while June shipment offers are $2-4/MT lower.