DDGS Weekly Market Report – July 26, 2018

Soymeal values continued to increase following last week’s turnaround, with Kansas City soymeal up $3.42 to $356.05/MT from last week. While FOB ethanol plant DDGS values increased slightly, DDGS still hold a $2.16 protein-unit cost advantage over soymeal. Corn prices are up as well, and the DDGS/cash corn value remains closely in line with its two-year average.

DDGS prices were mostly steady/higher this week, with prices at the U.S. Gulf up for August-October shipment and containers to Japan up $4/MT. Containers to Southeast Asian destinations are up as well, with merchandisers reporting sales to Vietnam and Indonesia and buyers from the Indian Subcontinent, the Middle East and Southeast Asian markets actively seeking offers.

Based on this market activity, DDGS prices have likely reached a point that aligns with buyers’ interest.