DDGS values are $7 lower this week as ethanol run rebounded for the third straight week and increased 9 percent for the week ending 14 October. DDGS supplies are increasing but feed demand has been strong as well. One merchandiser noted that “bids and offers are getting closer” and trade activity is picking up. Navigation issues on the Mississippi River are also creating price weakness in DDGS markets near the river system. The DDGS/Kansas City soymeal ratio rose to 0.57 this week, above the three-year average of 0.49, while the DDGS/cash corn ratio slipped back to 1.0 this week, below the three-year average of 1.06.
On the export market, Barge CIF NOLA prices are $10 lower as the logistics hurdles continue to ease. FOB NOLA offers are down similar amounts this week with November offers at $336/MT. Offers for 40-foot containers to Asia are steady/higher as increased product availability, river navigation issues, volatile freight markets exert their respective impacts. The average offer for containerized DDGS to Southeast Aisa hit $395/MT this week.