Cash corn values are $3.49/bushel this week while FOB ethanol plant DDGS are $164.14/MT, up substantially from last week. The DDGS/cash corn value is 119 percent, above the two-year average of 106 percent. Consequently, DDGS indications continued their upward momentum this week as supply dynamics (including additional domestic feeding demand) drive price increases.
Merchandisers reported sales to Indonesia for January shipment. DGGS at the U.S. Gulf are at $224/MT for last-half December delivery and increasing into deferred months. On average, 40-foot containers to Southeast Asian destinations were up $2/MT this week from last week. Prices for 40-foot containers to Indonesia ($247/MT) and Taiwan ($241/MT) are up $4/MT from last week. Prices for other international routes are firm but mostly unchanged.
A recent report noted that during the USGC-sponsored 2018 Export Exchange Conference, held this past October in Minneapolis, Minnesota, over 1.3 million metric tons of DDGS was collectively exchanged.