U.S. DDGS prices are firmer this week, rising $2-3/MT above last week’s values with steady ethanol production set against strong domestic demand. Kansas City soymeal prices are up $6/MT this week and the DDGS/Kansas City soymeal ratio is down from last week at 0.46. The DDGS/cash corn ratio is also higher this week at 0.76, up from 0.0.74 last week and the three-year average of 1.12.
Export demand for DDGS has been quieter this week following the markets recent pricing strength. Buyers were active the past few weeks on the break in DDGS prices and as the supply outlook for world feed grains tightened. Now, the DDGS market is turning sideways, and Barge CIF NOLA offers are down $2-5/MT for August/September shipment. FOB Gulf offers are steady/down $3 this week for nearby positions while deferred shipments are trading higher. Lingering tightness in the container market is supporting prices, with offers for 40-foot containers to Southeast Asia up $1-5/MT this week. The average price for containerized DDGS to Southeast Asia is $324/MT for September shipment. Industry sources note that some exporters are pulling offers for product into Hai Phong, Vietnam due to congestion at a transshipment port.