U.S. DDGS prices are up $6/MT this week and have scored their seventh consecutive week of gains. Support has come from strong domestic and international demand, combined with sustained rallies in soymeal futures. Ethanol run rates pulled back last week, tightening spot DDGS supplies, but output remains up 6 percent from this time in 2021. The Kansas City soymeal/DDGS ratio is steady this week at 0.44, down from the three-year average of 0.47, while the cash corn/DDGS ratio is at 0.93, down from 0.94 last week and below the three-year average of 1.06.
U.S. barge freight rates continue to rally and Barge CIF NOLA DDGS are up $6-7/MT for March/April/May shipment. FOB NOLA offers are up $15/MT for March and demand is shifting into Q2 positions, sending April offers up $17/MT. Prices for rail delivered DDGS are up $15-17/MT this week.
The market for containerized DDGS to Southeast Asia is mixed so far this week with exporters citing a wide bid/ask spread. On average, offers are down $4-6/MT for March and Q2 positions with the average price for 40-foot containers to Southeast Asia hitting $366/MT this week.