Cash corn prices are up slightly across the U.S. this week, with basis steady at 26 cents under September futures (-26U). Prices for DDGS FOB ethanol plants are down $1.50/MT this week while Kansas City soymeal prices are down $1.30/MT. DDGS are priced at 117 percent of cash corn values, down from last week and falling from five-year highs of 186 percent. The DDGS/soymeal price ratio is 0.44, down one percent from the prior week and above the three-year average of 0.42.
Merchandisers report that the DDGS supply pipeline is re-filing quickly, which is temporarily pressuring prices. Industry sources suggest that seasonal trends in domestic DDGS consumption will make more supply available for export in July and August. Barge CIF NOLA and FOB NOLA values are down $5/MT this week while U.S. rail rates have remained slightly firmer. Offers for containerized DDGS to Southeast Asia are mixed with firmer offers reported for product destined for Indonesia, Malaysia, Japan, and Taiwan. The average offer for 40-foot containers to Southeast Asia is unchanged at $235/MT this week.