Cash corn prices are lower across the U.S. this week, with basis levels widening back out after this year’s earlier surge in end-user demand. The average U.S. basis hit 31 cents under May futures this week, down from 13 under the prior week. Prices for DDGS FOB ethanol plants are sharply higher this week, despite a slight pullback in Kansas City soymeal values. DDGS are priced at 112 percent of cash corn values, up from last week and above the three-year average. The DDGS/soymeal price ratio is 0.48, up from the prior week and above the three-year average of 0.42.
DDGS merchandisers report that prices are rallying on expected supply tightening heading into Q2. Some in the industry expect the price-supportive impacts to continue into Q3 and Q4 of this year. Spot DDGS prices are up $20/MT this week, if offers can be obtained, for Barge CIF NOLA values while indications for April FOB Gulf DDGS are up $15/MT. U.S. rail rates are $15-20/MT higher as well, depending on the shipment period. Prices for 40-foot containers to Southeast Asia are up $20/MT for April shipment and $15/MT higher for May.