DDGS Weekly Market Report – January 7, 2021

U.S. DDGS values are up $5/MT this week as production rates slow while domestic demand remains strong. Strong rallies in corn, soybean, and soymeal markets have offered outside support for DDGS values as well. Kansas City Soymeal prices are up $6.50/MT this week at $487.50.  The DDGS/soymeal ratio currently sits at 0.45, equal with the prior week and above the three-year average of 0.42. The DDGS/cash corn ratio is 117% this week, steady with the prior week and above the three-year average of 109 percent.

Brokers and merchandisers report that the DDGS export market has been “thin and illiquid’ this week amid the CBOT rally and post-holiday trading lulls. Despite thin trade, offers are sharply higher following the broader commodity rally. Barge CIF NOLA rates are up $23/MT for spot shipment while FOB Gulf offers are $30/MT higher for January shipment at $302/MT. U.S. rail rates are $12/MT higher while 40-foot containers to southeast Asia are up $7/MT at $335 for January-March shipment.