DDGS prices were steady in very quiet trade before today’s WASDE report. Merchandisers are reporting prices jumped $2-3/MT after the report was released (and corn futures gained 3-6 cents), but it is yet unclear whether buyers will pay these new prices. Barge CIF NOLA prices were heard at $162.50/MT this week, down $2/MT from last week while FOB U.S. Gulf prices were heard from the mid-$170s to $180s. The average FOB Gulf price reported from merchandisers/traders was $178/MT.
DDGS are competitive as a feedstuff but buyers have little reason to buy sooner than necessary with ample feed supplied around the world. DDGS FOB ethanol plant prices are at 106 percent of cash corn values and 37 percent of KS soybean meal. The per-protein unit cost of DDGs is $1.86 less than that of soybean meal, keeping the ethanol coproduct very competitive in feed rations.
On the international side, U.S. exporters are reporting a very quiet market. Some have received inquiries from Vietnam, Malaysia, and the Philippines but no sales have been made yet. Most buyers are just returning from last week’s holiday and have covered their needs for at least the next few weeks. Exporters note that ocean freight is still a concern with $150 GRI’s reported on the table to begin in late October. The GRI is keeping some pressure on international sales.
On average, CNF Southeast Asia prices were $2/MT higher at just over $200/MT. Prices for October shipments of 40-foot containers to
Southeast Asia were higher for all routes and those destined for Myanmar led the way, gaining $6/MT this week. Prices for November shipment were steady/higher with smaller gains noted.