U.S. DDGS prices are down $2/MT this week in quiet trade. Brokers report that markets have been quiet from both the buy and sell sides, despite the recent increase in ethanol production. Volatility in barge freight is thought to be pushing additional product into the domestic market. Kansas City soymeal prices are up $13/MT this week as the futures market reversed course and is rallying sharply. The DDGS/Kansas City soymeal ratio sits at 0.53 this week, down from the prior week and above the three-year average of 0.47. The DDGS/cash corn ratio is lower this week at 0.97, down from 1.04 last week and below the three-year average of 1.09.
On the export market, Barge CIF NOLA rates up $10/MT for Q4 shipment and up $8/MT for January 2022. FOB Gulf offers are down $3/MT this week with bids and offers both harder to obtain. Brokers say Asian demand remains quiet for containerized DDGS and prices are unchanged from last week at $351/MT for 40-foot containers to Southeast Asia.
Please note that FOB Gulf markets will likely be more volatile than normal as the industry works to recover full capacity in New Orleans area export facilities. There are significant questions about elevation capacity and availability and the DDGS market will have to compete with other grains as the U.S. new crop harvest approaches. Consequently, both flat prices and spreads versus other markets may see greater than normal volatility.