DDGS values are $4-5/MT higher this week as a fourth consecutive week of declining ethanol run rates continues to restrict spot supplies and support values. Soymeal markets remain bullish with unusually strong basis levels and futures in an inverted curve, which is lending support to broader feedstuff markets. Domestic demand remains strong though the recent winter storms caused some lingering logistics issues.
The DDGS/Kansas City soymeal ratio is at 0.56 this week, up from last week and above the three-year average of 0.50. The DDGS/cash corn ratio edged higher this week to 1.06, up from last week’s value of 1.01 but equal to its three-year average.
On the export market, Barge CIF NOLA prices are higher for a fourth week with spot offers up $1-2/MT. FOB NOLA offers are $3-4/MT also higher and are showing a slightly inverted market. U.S. rail rates are $4-6/MT lower this week as logistics are still untangling from the past few weeks. Finally, offers for 40-foot containers destined for Southeast Asia are steady this week at $423 for February shipment.