DDGS Weekly Market Report – January 16, 2020

Cash corn prices are slightly firmer across the U.S. this week with basis narrowing to 12 cents under March futures. Prices for DDGS FOB ethanol plants are fractionally higher despite another sharp decrease in Kansas City soymeal prices. DDGS are priced at 107 percent of cash corn values, down with last week and above the three-year average. The DDGS/soymeal price ratio is 0.49, steady with the prior week and above the three-year average.

DDGS markets are  still quiet this week with much of the trade watching for the details of the U.S.-China trade agreement. Barge CIF NOLA values are $1-2/MT higher this week with winter storms across the Midwest tightening logistics. U.S. rail rates are increasing for the same reason as well. FOB NOLA offers are steady/slightly higher amid moderate international demand. Prices for 40-foot containers to Southeast Asia are $1/MT higher on average this week, with notable price increases for product destined for Vietnam and Thailand.