DDGS Weekly Market Report – May 5, 2022

DDGS prices are pulling back this week amid weaker soybean and soymeal prices and seasonal increases in DDGS output. Ethanol plants “have turned into sellers coming out of spring [maintenance] shutdowns” and are becoming aggressive on offers. At the same time, merchandisers note that buyers likely “double bought” their near-term needs amid the recent logistics challenges and are pausing while they take delivery.

FOB ethanol plant DDGS prices are down sharply this week and are averaging $297/MT, putting the DDGS/Kansas City soymeal ratio at 0.61, down from last week’s 0.66 and above the three-year average of 0.48. The DDGS/cash corn ratio is down to 0.97 this week, down from 1.06 last week and below the three-year average of 1.06.

On the export market, brokers and exporters report that Barge CIF NOLA values are down $19-22/MT for May through August shipment while FOB Gulf offers are down $20-25/MT. FOB Gulf offers for June averaged $343/MT this week, down $27 from the prior week. Container offers are down as well, though have seen greater support than the FOB market. Offers for 40-foot containers into Southeast Asia are down $16/MT from last week at $443/MT.