Cash corn prices are down across the U.S. this week, with basis narrowing to 23 under September futures (-23U). Prices for DDGS FOB ethanol plants are down $2.00/MT this week while Kansas City soymeal prices are unchanged. DDGS are priced at 117 percent of cash corn values, steady with last week and falling from April’s five-year highs of 186 percent. The DDGS/soymeal price ratio is 0.44, steady with the prior week and above the three-year average of 0.42.
Higher ethanol production and seasonal DDGS consumption trends put modest pressure on domestic DDGS prices this week. Barge CIF NOLA values are down $8-13/MT while FOB NOLA offers have found better support, falling just $4/MT for July/August shipment. U.S. rail rates are down slightly while rising ocean freight rates have supported CNF prices on the export market. Values for 40-foot containers to Southeast Asia are up $15/MT this week, averaging $250/MT.