DDGS prices are largely steady this week as the untangling from Hurricane Harvey progresses and that from Hurricane Irma begins. Barge CIF NOLA prices are steady to $2/MT higher while FOB Gulf quotes are steady to $5/MT higher. The WASDE report sent corn markets lower but merchandisers used active interest from Asia and limited near-term availabilities to sustain asking prices. Ethanol plants may find ways to produce additional tonnage coming out of the maintenance season to take advantage of the higher pricing.
International DDGS prices are steady to slightly lower this week with the average prices for 40-foot containers to Southeast Asia slipping a modest $1.5/MT to $196.50. Prices to Vietnam, Bangladesh, Myanmar, and China were all $1-2/MT higher while those for product destined for other Asian countries were lower.
From a feed ingredient perspective, FOB ethanol plant DDGS were steady this week while soybean meal prices fell, leaving DDGS $1.61 cheaper than soybean meal on a per-protein unit basis. FOB Gulf DDGS prices are 108 percent of FOB Gulf corn values and 51 percent of soybean meal, with both figures nearing their long-term averages. DDGS look to remain competitive in feed rations in the near term with active international interest and tightened near-term supplies offering support.