U.S. DDGS prices posted their sixth consecutive week of gains and rose $9.75/MT this week as recent strength in soymeal prices supported values. Ethanol and DDGS production continue to run above year-ago levels, but strong demand from domestic end-users and international buyers have pushed prices higher. Recent cold weather across the U.S. has increased livestock feed consumption and this week’s $25/short ton rally in CBOT soymeal futures has encouraged greater DDGS inclusion in feed rations.
U.S. barge freight rates continue to rally amid growing export demand and the logistical difficulties presented by recent Midwest cold weather. Barge CIF NOLA DDGS are up $8/MT for spot/March positions this week while April and May shipments are up $4-6/MT. FOB NOLA offers continue to rise as well, with March loadings up $10/MT this week at $303 and April/May up $6/MT. Prices for DDGS delivered via rail are mostly steady this week with Q2 offers down $1/MT.
The market for containerized DDGS to Southeast Asia is quiet this week amid the Lunar New Year holiday. Offers are steady for spot positions and up $1-2/MT for April and May shipment.