Cash corn prices are higher across the U.S. this week with the CBOT rally leading the way. Basis is slightly weaker, widening to 24 cents under September futures (-24U) as farm sales have been aggressive on the rally. Prices for DDGS FOB ethanol plants are down $4.00/MT this week while Kansas City soymeal prices are up $8/MT following a rally in that commodity’s futures market. DDGS are priced at 106 percent of cash corn values, down from last week and below the five-year average ratio of 109 percent. The DDGS/soymeal price ratio is 0.42, steady with the prior week and equal to the three-year average.
DDGS prices in the Gulf are firming as near-term supplies remain tight following spring production reductions. Barge CIF NOLA offers are $10-18/MT higher this week while FOB NOLA offers are up $6/MT. Merchandisers report that most international buyers have booked summer needs already, which is likely to keep prices steady in the near-term. Values for 40-foot containers to Southeast Asia continue to firm, buoyed by rising ocean freight rates. The average offers for containerized DDGS to Southeast Asia reached $252/MT this week.