DDGS values are $3 lower this week as ethanol run rates rose for a fourth straight week. Navigation issues on the Mississippi River have also pushed additional product into the domestic market, adding pressure to values. Of note is the fact that offers and trades for DDGS into the river system are starting to be quoted on a 34 percent pro-fat basis (versus the typical 35 percent). The DDGS/Kansas City soymeal ratio fell to 0.55 this week, above the three-year average of 0.49, while the DDGS/cash corn ratio slipped down to 0.98 this week, below the three-year average of 1.06.
On the export market, Barge CIF NOLA prices are $11 higher for November shipment, erasing all of last week’s declines as barge rates rally again. Offers for DDGS on barges for December and January are up $7 and $4/MT, respectively. FOB NOLA offers are up $9 for November at $345/MT for 35 percent pro-fat and near $335-330/MT for 34 percent pro-fat. Offers for 40-foot containers to Asia are up $10-15 at $407/MT this week.