DDGS Weekly Market Report – November 8, 2018

Cash corn values are $3.36/bushel this week while FOB ethanol plant DDGS are $145.11/MT, down slightly from last week. The DDGS/cash corn value is 110 percent, above the two-year average of 106 percent.

The market continues to bump along with a lack of bullish or bearish news resulting in several weeks of generally steady prices. This week merchandisers reported sales to Indonesia and Vietnam for November and December delivery. September export numbers show continued strong demand from Southeast Asian markets – especially Indonesia, Thailand and Vietnam.

Indications for November delivery of 40-foot containers to Southeast Asia are down slightly this week from last (-1$/MT on average) while containers to Taiwan fell $5/MT. At the U.S. Gulf, indications for November delivery were up for the second straight week; U.S. rail rates were up as well. Prices for January delivery are expected to increase due to higher domestic demand during the winter months.