DDGS Weekly Market Report – August 17, 2023

DDGS values are lower this week as ethanol output rose sharply last week and corn and soymeal values are weaker following the August WASDE report. With strong crop yields reassured in the USDA’s latest report, feed buyers continue to purchase on an “as needed” basis. The recent shift in the U.S. weather forecast, however, may cause yield concerns to resurface and prompt more action in deferred positions. The DDGS/cash corn ratio is steady this week at 1.12 and above the three-year average of 1.02. The DDGS/soymeal ratio was slightly lower at 0.45 and below the three-year average of 0.50.

Barge CIF NOLA DDGS offers are steady/higher this week with declining draft levels in the Mississippi River helping support freight rates. Spot offers are up $1/MT while October and November are up $4-6/MT week. FOB NOLA offers largely unchanged from last week, but September values are down $2 at $266/MT. U.S. rail rates are $5/MT lower for the week while offers for 40-foot containers to Southeast Asia are up $1-2/MT for September shipment and up $2/MT for Q4 as ocean freight rates firm for a second straight week.