DDGS prices are steady this week as buyers are reluctant to purchase after the past few weeks’ rise in prices. Support from soybean meal has helped merchandisers and ethanol plants defend asking prices in light of quieter demand. Last week’s ethanol production fell 3.6 percent, which will further support DDGS prices in the near-term.
Domestically, FOB ethanol plant prices are $2-3/ST higher while Kansas City Soybean meal gained $7-10/ST. Consequently, DDGS per-protein unit cost advantage against soybean meal increased to $1.84 this week. FOB ethanol plant DDGS are 102 percent of cash corn values.
FOB Gulf prices are steady this week. FOB soybean meal offering prices are up $3/MT, leaving DDGS values at 51 percent of soybean meal. FOB Gulf corn prices are steady and DDGS are valued at 111 percent of Gulf corn offers. DDGS/corn prices are now in-line with historic levels and a strong fundamental shift will be required in one market to significantly change the valuation ratio.
Internationally, merchandisers are reporting Vietnamese buyers are actively looking for product through December shipment though interest has slowed this week. Prices for 40-foot containers to Southeast Asia were steady this week, averaging $198/MT, with prices for product destined to China registering the only gains (up $2/MT) for the week.