DDGS Weekly Market Report – July 9, 2020

Cash corn prices are higher across the U.S. this week with firm CBOT values supporting cash bids. Basis is slightly stronger, narrowing to 22 cents under September futures (-22U) as farm sales have slowed after their aggressive pace when December futures first neared $3.50/bushel. Prices for DDGS FOB ethanol plants are down $1.50/MT this week while Kansas City soymeal prices are down $4/MT as soymeal futures retreat from recent highs. DDGS are priced at 106 percent of cash corn values, equal with the prior 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 steady as constant and below year-ago production levels coincide with buyers having filled near-term and early fall needs. Barge CIF NOLA offers are down $10-15/MT this week, while FOB NOLA offers are steady/up $1 for August and September shipment. Steadiness in ocean freight values has left offers for 40-foot containers destined for Southeast Asia unchanged this week. The average offers for containerized DDGS to Southeast Asia reached $248/MT this week.