DDGS Weekly Market Report – January 12, 2023

DDGS values are $2-4/MT lower this week as ethanol run rates and DDGS production rebounded 11 percent last week. A pullback in physical soymeal markets has also helped DDGS values ease back, despite the fresh contract highs in soymeal futures.

The DDGS/Kansas City soymeal ratio is at 0.52 this week, down from last week and above the three-year average of 0.50. The DDGS/cash corn ratio edged higher this week to 1.12, up from last week’s value of 1.06 and above the three-year average.

On the export market, Barge CIF NOLA prices pulled back for the first time in five weeks as barge freight rates ease lower. FOB NOLA offers are down $8-9/MT for February and March shipment with offers averaging $342/MT. U.S. rail rates are $5-6/MT higher as the logistics snarls from winter storms a few weeks ago are cleared and operations are returning to normal. Offers for 40-foot containers to Southeast Asia are down $4-7/MT this week as ocean freight rates pull back. February and March shipments CNF Southeast Asia averaged $412/MT as of mid-day Thursday.