DDGS Weekly Market Report – May 25, 2023

DDGS values are $2-3/MT lower this week on quiet end user demand and pressure from the weaker soymeal market. The April and early May decline in corn futures pushed DDGS values lower over the same time period but this week’s corn market rally has yet to buoy DDGS values. Ethanol run rates were essentially steady last week and were down 3 percent from 2022 levels, which should start to support DDGS values going forward.

The FOB ethanol plant DDGS/cash corn price ratio is lower this week at 1.06, down from 1.13 last week and equal to the three-year average of 1.06. The DDGS/Kansas City soymeal ratio of 0.55 is down slightly from the prior week but still above the five-year average of 0.50.

Barge CIF NOLA values dropped again this week with offers for June falling $4/MT to $271 while FOB NOLA offers are down $8 for June at $276/MT. U.S. rail rates are down $4-6/MT this week with offers for product delivered to the PNW, California, and Laredo, Texas pushing lower while FOB Lethbridge, Alberta offers are up $3/MT for June. Offers for 40-foot containers to southeast Asia are down another $6/MT this week at $360 amid less costly freight rates and more competitive DDGS offers.