Cash corn values are $3.47/bushel this week while FOB ethanol plant DDGS are $154.18/MT, up nearly $10/MT from last month at this time. The DDGS/cash corn value is 113 percent, above the two-year average of 106 percent. DDGS indications saw a correction upwards this week due in part to a seasonal increase in domestic feeding demand and a resulting tightening in supply. Additionally, rallies in the soybean/soymeal markets pulled DDGS higher. DDGS prices are reportedly firming up and buying activity is focused on a number of U.S. rail markets.
This week, merchandisers reported sales to Indonesia and Vietnam as those markets continue to stand out as solid destinations for U.S. DDGS. DDGS at the U.S. Gulf are at $215/MT for December delivery and increasing into deferred months. On average, 40-foot containers to Southeast Asian destinations were up $6/MT this week from last week.
Exports of U.S. DDGS in October 2018 totaled over 1 million metric tons, 1 percent higher than the same month in 2017. Mexico, Vietnam, Indonesia, Thailand and South Korea remain the top five markets for U.S. product. DDGS exports to Indonesia saw the largest month-to-month uptick among the aforementioned markets, increasing 43 percent from September-October 2018.