U.S. DDGS prices are lower this week as ethanol run rates increase and weaker soymeal futures pressure the market. Merchandisers report strong domestic demand but additional production is pressuring prices on the margin. The DDGS/cash corn ratio is 0.85 this week, down from the prior week and below the three-year average of 1.13. The DDGS/Kansas City soymeal ratio is down from the prior week at 0.55 and above the three-year average of 0.46.
On the export front, DDGS prices are mixed this week. Barge CIF NOLA prices down $4-5/MT while FOB Gulf offers are steady/up $2/MT at $274/MT for July shipment. Prices for 40-foot containers to Southeast Asia are down $18/MT with offers averaging $352/MT this week.