DDGS values are steady/$3 higher this week due to rising feedstuffs prices and steady feed demand in the Midwest. Ethanol run rates have declined in two of the past three weeks, which has helped pare down product supplies. With barge traffic on the Mississippi River increasing and approaching more normal levels, export demand has picked up as well.
The DDGS/Kansas City soymeal ratio is at 0.52 this week, down slightly from two weeks ago and above the three-year average of 0.50. The DDGS/cash corn ratio edged slightly higher this week to 0.97 percent, still below the three-year average of 1.06.
USDA’s monthly Grain Crushings report showed DDGS production rose 8.2 percent from September and totaled 1.75 million tons in October. That volume was down 10.4 percent from October 2021, however, and the year-over-year production decrease has helped support prices this fall.
On the export market, Barge CIF NOLA prices are $15 lower for spot shipment as barge rates have softened in the past two weeks. Offers for FOB NOLA DDGS are down $12/MT for spot shipment but only down $2-4 for Q1 2023 positions with February shipments offered at $325/MT. Offers for 40-foot containers of DDGS are lower this week with noted pressure for spot shipment. December containers are down $4/MT at $388/MT this week while Q1 2023 positions are trading $3-7 higher at $395-398.