DDGS values are firmer this week after a few weeks of declines enticed end users to increase purchases. End users became more active at the end of last week and that trend has continued through the present week. Additionally, another week of declining ethanol production helped pare back supplies in the spot market and further support values.
The FOB ethanol plant DDGS/cash corn price ratio was steady at 1.12 from the prior week above the three-year average of 1.06. The DDGS/Kansas City soymeal ratio is higher this week at 0.57, up from 0.56 last week and still above the five-year average of 0.50.
Barge CIF NOLA values turned higher this week with offers for June rising $8/MT to $281 while FOB NOLA offers are up $5 for June at $293/MT. Offers for July and August positions are up $10-12/MT in the FOB market. Offers for 40-foot containers to southeast Asia are up $5/MT at $371 with increases in values for product on the river system offsetting declines in freight rates.