U.S. DDGS values are slightly weaker this week despite ethanol planting cutting run rates. Brokers report that concerns about future supply issues are prompting buyers to sit tight this week. FOB ethanol plant offers are down $1-3/MT from the prior week while soymeal values have fallen $7/MT this week. The DDGS/soymeal ratio currently sits at 0.50, up from the prior week and above the three-year average of 0.42. The DDGS/cash corn ratio is near 131% this week, down from the prior week and above the three-year average of 109 percent.
Brokers report that international demand for DDGS remains strong but logistical snags for container loadings in California is pressuring domestic values. Sources report that some vessels are leaving ports with less than what was booked due to a lack of empty containers. This is causing a backup of product that is now destined for the CIF market. Barge CIF NOLA offers are down $12/MT for Q1 positions while FOB NOLA offers have fared better, falling just $9-10/MT. The container market dynamics are supporting offers for 40-foot containers to Southeast Asia, with offers up $5-6/MT for Q1 positions at $321/MT on average.