DDGS Weekly Market Report – July 13, 2023

DDGS values are higher this week despite corn futures’ post-WASDE declines as last week’s decrease in ethanol and DDGS production has helped tighten supplies. Additionally, soymeal futures have been steady/higher, which has helped bring support to the broader protein/feedstuff markets. DDGS traders note that some container lines are struggling to get empty containers into normal loading areas, which is causing spreads to deviate from typical patterns. Additionally, the container market dynamics are pushing product into locations where it can unload, and logistics are driving a substantial portion of the market this week.

The DDGS/cash corn ratio is up from last week at 1.13 and above the three-year average of 1.02 while the DDGS/Kansas City soymeal ratio is down slightly at 0.46 and below the three-year average of 0.50.

Barge CIF NOLA DDGS offers are $4-8/MT higher this week on stronger barge freight while FOB NOLA offers mostly higher despite wide-ranging indications. Offers for 40-foot containers to Southeast Asia are down $2/MT at $309 for August shipment and are up just $1-2/MT for September-October positions.