U.S. DDGS values are higher this week amid continued reductions in ethanol plant run rates. Brokers report that supplies are adequate this week but any uptick in foreign purchase interest will likely spark another rally. FOB ethanol plant offers are up $2/MT from the prior week while soymeal values have risen $15/MT. The DDGS/soymeal ratio currently sits at 0.49, down from the prior week and above the three-year average of 0.42. The DDGS/cash corn ratio is near 133% this week, up from the prior week and above the three-year average of 109 percent.
Brokers say DDGS markets were quiet early in the week, but activity picked up Wednesday and Thursday. Continued container market logistics issues are still causing backups in the domestic market, pushing barge CIF NOLA prices down $4/MT this week for January positions. FOB Gulf offers are $2-4/MT lower this week while U.S. rail rates are steady/$1 lower. Containers destined for Southeast Asia have fallen $2-3/MT this week, averaging $320/MT.