U.S. DDGS values are sharply higher this week with some merchandisers describing markets as volatile. Other sources say markets have been trending higher with occasional halts as buyers and sellers adjust pricing ideas. Regardless of the description, domestic DDGS prices are up $8/MT this week while Kansas City soymeal offers are up $5/MT. DDGS are valued at 122 percent of cash corn prices, up from last week and above the three-year average of 109 percent. The DDGS/soymeal ratio reached 0.45 this week, above the prior week and the three-year average of 0.42.
DDGS brokers and merchandisers report that barge demand is rising quickly and supporting Q1 values. Domestic demand is also increasing and DDGS producers, facing higher costs shipping to river markets, are selling into domestic markets aggressively. Container demand is reportedly also strengthening with strong trade this week, and expectations are that this trend will continue into 2021.
Barge CIF NOLA offers are up $5/MT for spot shipment and up $10-11/MT for Q1 2021 this week. FOB Gulf offers are up $4-8/MT for December-February shipment. Rail rates are mixed with prices for Kansas City or Elwood, IL railyards up $3-6/MT this week while rail-delivered DDGS to Laredo, TX or California are down $6-8/MT. Offers for 40-foot containers to Southeast Asia are up $7/MT, averaging $310.