DDGS Weekly Market Report – February 4, 2021

U.S. DDGS are steady this week with ethanol production rising slightly and end-users having booked most of their Q1 and early Q2 needs. Kansas City soymeal prices are $5/MT higher despite declines in FOB prices. The DDGS/soymeal ratio stands at 0.50, steady with the prior week and up from the three-year average of 0.42. The DDGS/cash corn ratio is down from the prior week at 115 percent and above the three-year average of 110 percent.

Industry sources say the export DDGS market is mixed in quiet trade. Merchandisers and exporters report a wide bid/ask spread is creating volatility in traded prices. Barge CIF NOLA values are slightly lower this week while FOB NOLA offers are steady/$1-2/MT higher. Prices for 40-foot containers to Southeast Asia are higher this week, with product destined for Malaysia leading the way. On average, containers to Southeast Asia are offered at $355-356 for February-April shipment, with spot offers up $8/MT while deferred positions are up $6/MT.