DDGS values are steady/lower this week ethanol output dropped for the third time in four weeks, but domestic and international demand remains unmoved. DDGS output last week was up 6 percent from the prior year and strong ethanol production margins suggest supplies will remain strong heading into fall. Feedstuffs markets have been volatile this past week with soymeal posting a strong rally but corn futures down slightly after choppy trade. The lack of direction in other feed markets has helped keep DDGS values range bound.
The DDGS/cash corn ratio is lower this week at 1.11 but still above the three-year average of 1.02. The DDGS/soymeal ratio is slightly lower at 0.44 and below the three-year average of 0.50.
Barge CIF NOLA DDGS offers are mixed this week with spot rates up $2 as freight rates firm on rising demand and falling water levels while deferred positions are slightly lower. FOB Gulf offers have followed a similar pattern with September offers up $1 at $266/MT. U.S. rail rates are $3-4/MT higher while 40-foot containers to Southeast Asia are down $7/MT and average $311/MT for spot/September shipment.