FOB ethanol plant DDGS values increased over $4 from Friday’s close, with cash corn prices up as well. The DDGS/cash corn value remains directly in line with its two-year average.
DDGS prices were up across the board this week, jumping to $224/MT for FOB U.S. Gulf August shipment. Containers to Southeast Asia saw double-digit increases, with merchandisers reporting brisk market activity and sales to Vietnam and Thailand.
According to USDA FAS, Vietnam’s animal feed demand in 2018/19 will be up 3 percent to 30.9 MMT due to expanding pork and
aquaculture production. DDGS consumption will make the biggest jump in consumption, rising 45 percent to 1 MMT.
Reportedly, ocean container capacity is filling up rapidly in response to the market’s activity.