U.S. DDGS prices are stronger again this week, rising $3/MT amid the ongoing surge in end-user demand. While soymeal prices have declined from recent highs, livestock feeders continue to add DDGS into rations. The DDGS/soymeal ratio is at 0.46 this week, up from 0.44 last week and near the three-year average of 0.47. This week’s DDGS/cash corn ratio is at 0.91, steady with last week but below the three-year average of 1.07.
Cold weather and the associated logistical difficulties are impacting barge markets and pushing freight rates higher, which, in turn, are supporting export destined DDGS prices. Gains in barge freight rates have pushed offers for DDGS Barge CIF NOLA up $7/MT for February while March and April offers are up $5/MT. Similarly, FOB NOLA offers are up $11/MT to $298/MT for February while March positions are up $8/MT at $287.
Prices for DDGS containers to Southeast Asia are mostly higher this week, rising $3-8/MT for February through April positions. Like last week, brokers report steady increases in export interest but that both buyers and sellers remain patient. Prices for 40-foot containers into Southeast Asia are averaging $365/MT so far this week.