Cash corn values are $3.52/bushel this week while FOB ethanol plant DDGS are $151.36/MT, down from last week. The DDGS/cash corn value is 109 percent, above the two-year average of 107 percent.
DDGS indications are mostly down this week compared to last as the combined impacts of the Chinese New Year, Lunar New Year, and Tet Holiday have resulted in a very quiet market. Adjustments downward for Asian destinations are modest, however, with 40-foot containers to Southeast Asia (March delivery) down just $2/MT. At the U.S. Gulf, barge logistics continue to face challenges from high water as a result of snowmelt and rain; this is expected to impact river traffic into next week. FOB U.S. Gulf for March delivery was down $3/MT this week from last to $215/MT.
According to data released by the U.S. Census Bureau on Wednesday, February 6, U.S. exports of DDGS in November 2018 were 16 percent higher than the same month in 2017. Additionally:
- Mexico was the top buyer of U.S. DDGS in November 2018 (174,465 MT).
- The second-largest market for U.S. DDGS, Vietnam, purchased over 166,000 MT.
- Exports to Indonesia, Thailand, and South Korea remained strong.