DDGS prices are $13/M higher this week and buyers note the tone is “quite a bit firmer”. Ethanol run rates were lower last week, which has helped support values amid a pre-WASDE report rally in corn and soymeal futures. The DDGS/Kansas City soymeal ratio is up from last week at 0.48 and below the three-year average of 0.49. The DDGS/cash corn ratio rose from the prior week to 0.93 and below the three-year average of 1.06.
Barge CIF NOLA DDGS values are up $4/MT for spot shipment and up $6-7/MT for October-December positions. FOB NOLA offers have followed the same trend with September offers up $3 and Q4 positions priced $7/MT above last week. Brokers indicate international demand is becoming active amid the soymeal rally and crop production worries in Europe. Offers for 40-foot containers to Southeast Asia are up $5-6/MT at $383 for Q4 shipment.