U.S. DDGS prices are steady this week with little to move the market.
Barge CIF NOLA prices are unchanged at $163.50/MT as both the
freight and DDGS markets stabilized further this week. FOB NOLA
prices fell $1/MT to $176/MT, but are $6/MT higher than this time last
year.
U.S. FOB ethanol plant DDGS are prices at 38 percent of Kansas City soybean meal values and 102 percent of cash corn, both ratios working their way 1 percent higher this week due to weakness in soybean meal/corn. The per-protein unit cost of DDGS is $1.72 lower than soybean meal, $0.28 higher than this time last year. Still, DDGS remain very competitive in feed rations and this week’s pricing stability should encourage further near-term consumption.
Prices for 40-foot containers to Southeast Asia rose $2/MT this week on the back of rising freight rates. Rates for product destined for China fell this week, giving back almost all of last week’s gain. Prices for DDGS destined for other Southeast Asian destinations were broadly higher, with $4-5/MT price increases for Indonesia and Malaysia.
With ethanol production remaining well above the 1,000 barrel/day mark, DDGS supplies should be ample in the near-term. Demand remains adequate to prevent supplies from overwhelming the market and the coming week should feature further pricing stability