DDGS prices are $2-3/MT stronger this week as the rally in spot soymeal and volatile but largely sideways trade in corn futures offer stability to the co-product market. After several weeks of declining ethanol run rates, DDGS supplies are tightening on the margin and one buyer noted that “things tightened up a bit this week”. The DDGS/Kansas City soymeal ratio was lower at 0.47 this week, down from 0.50 last week and below the three-year average of 0.49. The DDGS/cash corn ratio was down from the prior week at 0.90 and below the three-year average of 1.06.
On the export market, offers are firming amid barge tightness and the uptick in domestic vales. Brokers and exporters note that trade has been quiet this week but offers are creeping higher anyway. Barge CIF NOLA offers are up $20/MT for August-October positions while FOB Gulf offers are up $5-6/MT for the same months. The recent slide in ocean freight rates has pulled offers for 40-foot containers to Southeast Asia lower, with the average rate this week at $396/MT, down $10 from last week.