DDGS Weekly Market Report – May 10, 2018

DDGS prices are higher this week with FOB ethanol plant values up $4/MT, despite falling soybean meal prices. Kansas City soybean meal values dropped $13/MT this week, sending DDGS’ per-protein unit cost advantage $0.40 lower to $1.48/protein-unit.

Barge CIF NOLA values are lower this week, giving back only some of last week’s $13/MT gain. FOB Gulf values followed a similar pattern this week, dropping after last week’s $8/MT gain. Netbacks for those with river access remain near two-year highs.

Internationally, exporters are reporting prices remain firm in Asia. Buyers are calling frequently, hoping for lower prices that simply aren’t coming yet. Merchandisers suggest that eventually buyers will be forced to cover their position/needs, and hint that this will occur at higher prices. Prices for 40-foot containers CNF Southeast Asia are presently valued at $242.50/MT.