Domestic and international DDGS demand remains strong and is underpinning values. FOB ethanol plant prices are up $5/MT this week with rallies in corn and soymeal offering outside support. DDGS are valued at 115% of cash corn, down from the prior week and above the three-year average of 109%. Kansas City soymeal values are $10/MT higher this week with CBOT futures and export interest supporting prices. DDGS are valued at 42% of Kansas City soymeal, equal to the prior week and the three-year average.
Brokers report that international buyers were quiet this week ahead of the Grain Stocks report. After the report was released, bids reportedly increased to match the prior day’s asking prices but little business was done. Trading activity increased Thursday as bids and offers were more readily available amid more stable CBOT markets.
Prices for export DDGS are firmer this week with Barge CIF NOLA offers up $9-12/MT and FOB Gulf offers up $16/MT for LH October and up $10-12 for November/December. U.S rail rates are $9/MT higher while offers for 40-foot containers to Southeast Asia are mostly higher. Offers for containers to Indonesia and Vietnam are up $7-9/MT and those destinations are leading the market higher. On average, containers to Southeast Asia are up $2-3/MT, averaging $256/MT this week.