U.S. DDGS prices are down $10/MT this week as ethanol run rates continue to rally. Brokers indicate, however, that a market bottom seems to have been reached late Wednesday/early Thursday. Container logistics constraints continue to negatively impact the truck market, pushing more product to the river system. The DDGS/cash corn ratio at 1.09, down from 1.13 last week and nearly equal the three-year average of 1.10. Similarly, the DDGS/Kansas City soymeal ratio fell slightly to 0.52, down from 0.54 the prior week but above the three-year average of 0.43.
Exports note some business has been done this week, but volumes have not offset the effects of increasing production. Rising freight rates and a stronger U.S. dollar are developments with which buyers must now contend. Barge CIF NOLA offers are down $13/MT for spot positions but just $4-5/MT lower for May-July. FOB NOLA offers have found better support, trading $3-5/MT lower and averaging $277/MT for April and May. Prices for 40-foot containers to Southeast Asia are mixed with spot positions down $4/MT while deferred positions are up $1-5/MT. The average offer for spot containers reached $334/MT this week.