DDGS prices continue to work their way higher, though gains moderated from last week. Merchandisers are reporting supplies are not as tight as a few weeks ago but demand remains strong, particularly for Gulf product. FOB ethanol plant DDGS increased $0.75/ton on average this week to their last quote of $130.
Domestically, DDGS are priced at 45 percent of Kansas City soybean meal and 117 percent of cash corn values. On a per-protein unit basis, DDGS are $0.88 cheaper than soybean meal. DDGS CIF NOLA barge prices fell this week even as FOB NOLA DDGS gained $3/MT to end at $203/MT. The diverging price trends between these two destinations may indicate a period of stability coming for DDGS prices in the U.S. FOB NOLA DDGS are valued at 59 percent of FOB NOLA soybean meal and 130 percent of FOB NOLA corn. DDGS delivered via rail to the PNW ended $3/MT higher at $220 this week.
On the international front, Asian prices are firm with active demand for nearby shipments. Some traders are claiming Vietnamese buyers are looking to buy January-March shipments. With other Asian prices heading higher, sellers are yet unwilling to lower asking prices. The average price for 40-foot containers destined for Southeast Asia reached $222/MT this week, with buyers paying $3/MT more on average. Prices for product to Taiwan, Japan, and Bangladesh led the way, rising $4/MT while all reported destinations increased at least
$2/MT.