DDGS Weekly Market Report – January 23, 2020

Cash corn prices are firmer across the U.S. this week with basis widening to 19 cents under March futures. Prices for DDGS FOB ethanol plants are fractionally higher despite a $4/MT decrease in Kansas City soymeal prices. DDGS are priced at 107 percent of cash corn values, steady with last week and slightly above the three-year average. The DDGS/soymeal price ratio is 0.50, up from the prior week and above the three-year average.

DDGS markets are still quiet this week but prices are firming across the board. Barge CIF NOLA values are $1-2/MT higher this week for spot positions while April delivery quotes are up $3/MT. U.S. rail rates are continuing to firm as well, up $2/MT this week. FOB NOLA offers are mostly steady with a relatively flat forward curve while prices for 40-foot containers for Southeast Asia are up $1-2/MT this week. The average quote for February containers to Southeast Asia is $249/MT.