Strong domestic and international demand continues to underpin DDGS values. FOB ethanol plant prices are up $6/MT this week and are valued at 113% of cash corn, up from the prior week and above the three-year average of 109%. Kansas City soymeal values are up $14/MT this week with CBOT futures posting new contract highs amid tightness in Argentine supplies and steady global demand. DDGS are valued at 41% of Kansas City soymeal, down from last week and below the three-year average.
Brokers and merchandisers report that prices have seemingly increased $1-3/MT each day this week. Some buyers were caught without coverage and sellers are now thinking they can wait a day to book sales and catch a higher bid. Some participants remain on the sidelines amid wide bid/ask spreads and significant daily price moves. Brokers report that market activity picked up on Thursday, however, with buyers looking to extend coverage.
FOB NOLA DDGS are up $9/MT for November positions and up $16/MT for January shipment. U.S. rail rate are sharply higher this week, up $22-25/MT depending on the month. The container market has been slightly calmer this week with November offers up $10/MT while December/January positions are up $15/MT.