Cash corn prices are steady/higher across the U.S. this week with the futures market rally and stronger cash bids supporting values. Prices for DDGS FOB ethanol plants are $1.00/MT higher despite a notable move lower in Kansas City soymeal prices. DDGS are priced at 102 percent of cash corn values, down from last week and below the three-year average of 106 percent. The DDGS/soymeal price ratio is 0.44, up slightly from last week and slightly above the three-year average.
DDGS merchandisers and traders report the market is strengthening due to ethanol plant slowdowns that have tightened supplies. With the slowdowns expected to continue into the fall and winter, DDGS supplies will remain price supportive. Some merchandisers suggest that DDGS prices would be notably higher if not for demand competition from large world corn and soybean stocks.
FOB Gulf DDGS prices are slightly ($3/MT) lower this week for October shipment while U.S. rail rates have increased $2/MT on average. Asking prices for 40-foot containers to Southeast Asia are up $4/MT to $239/MT following last week’s active inquiries.