Cash corn prices are higher across the U.S. this week with the futures market rally supporting prices. Basis is steady at 9 cents under May futures, remaining unusually strong for early March. Prices for DDGS FOB ethanol plants steady this week while cash soybean meal prices have rallied another $4/MT on news of Argentina’s higher export taxes. DDGS are priced at 106 percent of cash corn values, down from last week and equal to the three-year average. The DDGS/soymeal price ratio is 0.47, down from with the prior week and above the three-year average of 0.42.
Slow farm sales of corn in the U.S. are causing ethanol plants to “scramble” to secure corn, according to industry sources. Consequently, DDGS supplies are tightening and more sales are being made for April than the spot month (March). Merchandisers report that domestic demand is picking up with the recent increase in soymeal prices and that “healthy” export demand is supporting the CIF market. Barge CIF NOLA values are up $4/MT for March shipment and $2/MT for April while FOB Gulf offers are $1-2/MT higher across March, April and May. U.S. rail rates are up $1/MT.
Values for 40-foot containers to Southeast Asia are sharply higher this week as export demand is picking up. Spot position are are $3/MT higher on average while April shipment values are $11/MT higher this week. The average price for containers to Southeast Asia hit $258/MT for March and $264/MT for April shipment.