FOB ethanol plant DDGS values continued their upward momentum
this week, up nearly $4 from last Friday’s close. Cash corn prices
were up $1.59 from Friday, and the DDGS/cash corn value stands at
106 percent of its two-year average.
DDGS container rates to Asia were generally up this week, with 40-
foot containers to the Philippines seeing an increase of $6/MT from
last week. Containers to Taiwan, Indonesia, Malaysia, Vietnam,
China and Japan were up as well. Activity in Asian markets remains
brisk, with merchandisers reporting sales to Indonesia and Vietnam
amid a period of strengthening prices.
FOB vessel U.S. Gulf for August shipment is $220/MT. In analyzing
historical data, DDGS at the Gulf continue their steady increase that
started in early 2017. In the freight market, merchandisers report
limited GRIs from carriers that were already fairly low relative to
others.