Cash corn was down from last week to $3.0148/bushel, and FOB ethanol plant DDGS values fell as well to $145.01/MT (note: last week FOB ethanol plant DDGS values were $132.02 per short ton, or 145.53 per metric ton). The DDGS/cash corn value is 16 percent higher than its two-year average.
Reductions in ethanol production are expected to support the DDGS market. Merchandisers report a rebound in market activity, and stronger-than expected DDGS prices, even in the face of falling corn prices, are likely indicative of more robust demand for the corn co-product.
DDGS prices were generally down across the board. A continued pickup in interest from international buyers is being reported as prices are nearing the market’s bottom. On average, prices for 40-foot containers to Southeast Asia fell $4/MT for October; FOB Gulf indications and U.S. rail rates were down as well.