Cash corn values are $3.42/bushel this week while FOB ethanol plant DDGS are $162.33/MT, up over $2 from last week. The DDGS/cash corn value is 121 percent, above the two-year average of 107 percent.
Changes in DDGS indications were mixed this week. Container rates for major international destinations firmed up after last week’s significant downward correction; on average, 40-foot containers to Southeast Asian markets were down $4/MT this week form last week. Indications for FOB U.S. Gulf were even more firm, down $2/MT from last week to $212 (February delivery). U.S. rail rates to the U.S. West Coast showed a sharper decrease.
Merchandisers reported sales to Indonesia, South Korea, Taiwan and Vietnam for February and March delivery, as Asian markets continue to show strong demand for U.S. DDGS.