DDGS Weekly Market Report – July 16, 2020

Cash corn prices are lower across the U.S. this week with declining CBOT values and larger farm sales pressuring cash bids. Basis is steady at 22 cents under September futures (-22U). Prices for DDGS FOB ethanol plants are up $1.00/MT this week while Kansas City soymeal prices are down $7.40/MT as soymeal futures remain defensive. DDGS are priced at 113 percent of cash corn values, up from the prior week and above the five-year average ratio of 109 percent. The DDGS/soymeal price ratio is 0.43, above the prior week and slightly higher than the three-year average of 0.42.

DDGS prices in the Gulf are lower this week as exporters work to keep prices competitive and attractive. Barge CIF NOLA offers are down $6/MT while FOB Gulf asking prices are down $4/MT at $190 for August shipment. A mixed ocean freight market, combined with competitive export offers, has pushed prices for 40-foot containers to Southeast Asia down $8/MT for spot shipment, averaging $242/MT this week.