Cash corn prices are higher across the U.S. this week, with basis levels widening as the futures market moved higher. The average U.S. basis hit 25 cents under May futures this week, down from 23 under the prior week. Prices for DDGS FOB ethanol plants are sharply higher this week, up $16/MT while Kansas City soymeal prices have stabilized and pulled back slightly. DDGS are priced at 133 percent of cash corn values, up from last week and above the three-year average. The DDGS/cash corn ratio is at its highest level since July 2016. The DDGS/soymeal price ratio is 0.48, steady with the prior week and above the three-year average of 0.42.
Nearby DDGS supplies remain tight with ethanol plants cutting back production. Merchandisers report that DDGS exports in April will be strong and that trend is likely to continue into May as well. The expectation is that prices for deferred DDGS shipments will rally later this spring, following the current rise in spot values, as demand should remain strong and the DDGS supply pipeline will remain tight. This week, Barge CIF NOLA values are up $22/MT for April shipment while FOB Gulf values are up $16/MT. The market for rail delivered DDGS is exceptionally strong as well, with rates to the PNW and California up $45/MT or more for April shipment.
Internationally, offers for containerized DDGS to southeast Asia are reflecting strong demand, with the average rate rising $28/MT for April positions and $35/MT for May. The average value for containers to Southeast Asia hit $311/MT this week.