Cash corn prices are steady across the U.S. this week, with basis remaining stable near its five-year average. Prices for DDGS FOB ethanol plants continue to pullback from their recent move higher, falling $10/MT this week. Kansas City soymeal prices are slightly firmer, up $1.10/MT this week, which is offering some modest support for DDGS. DDGS are priced at 163 percent of cash corn values, down from last week and falling from five-year highs. The DDGS/soymeal price ratio is 0.56, down from the prior week and above the three-year average of 0.42.
DDGS prices are lower this week with merchandisers reporting that buyers have been waiting for advantageous purchasing opportunities. That time may be nearing, however, with traders noting that prices are likely to firm as refilling the DDGS pipeline will take time and current supplies are down 50 percent. Exporters are broadly expecting an uptick in DDGS sales after this week’s price decline and there are rumors that international buyers are extending coverage.
Barge CIF NOLA values are down $5/MT for June shipment this week while FOB NOLA offers are down $8/MT to their average of $208/MT. Offers for 40-foot containers to Southeast Asia have found better support, with the average price declining just $5/MT this week to $262/MT for June shipment.