DDGS Weekly Market Report – May 17, 2018

DDGS continued firmness in U.S. soymeal prices is supporting DDGS values. Exporters report fewer buyer inquiries this week but are still making sales to Southeast Asian buyers covering shorts.

Domestically, FOB ethanol plant DDGS are $2/MT higher while KC soybean meal values are $3/MT lower. The per-protein unit cost of DDGS is $1.20 less than that of soybean meal, with the difference narrowing from last week.

On the export front, Barge CIF NOLA values are steady/$0.50/MT higher while FOB Gulf DDGS are up. Improving rail logistics have pressured prices for rail-delivered DDGS to the PNW, with the average price down $1.50/MT this week. CIF Southeast Asia prices are $4/MT lower as most buyers have covered immediate needs.