Domestic DDGS demand remains strong amid a continued year-over-year decrease in ethanol and DDGS production. DDGS merchandisers note that DDGS use by the animal feeding industry is expected to be higher in Q4 2002 due to lower slaughter rates earlier this year. FOB ethanol plant DDGS prices are $1-2/MT higher this week while Kansas City soymeal prices are down $2.00/MT. DDGS are priced at 116 percent of cash corn values, equal with last week and above the five-year average ratio of 109 percent. The DDGS/soymeal price ratio is 0.44, up from the prior week and above the three-year average of 0.42.
Exporters report that international destinations have started booking product for fall shipment. Combined with a firmer domestic market, the additional buying interest has pushed prices higher. Barge CIF NOLA offers are up $2-3/MT from the prior week while FOB Gulf offers are up $3/MT for October and $2 for November/December. Rail-delivered DDGS are up $4/MT this week for fall delivery while offers for 40-foot containers to Southeast Asia are up $2-3/MT at $244-246/MT.