DDGS Weekly Market Report – July 3, 2020

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.