DDGS Weekly Market Report – September 28, 2023

DDGS values are lower this week after a strong rebound in ethanol output due to improved production margins amid stronger gasoline and energy values. Logistics constraints on the Mississippi River are altering normal spread relationships for product along the river system. This week’s rebound in corn and soymeal values has offered some support to the ethanol co-product, but demand remains steady.

The DDGS/cash corn ratio is down from the prior week at 1.23 and remains above the three-year average of 1.02. The DDGS/soymeal ratio also retreated from the prior week and hit 0.47, which is still below the three-year average of 0.50.

Rates for DDGS delivered by rail to key U.S. locations are down $8-9/MT this week, despite continued draft issues on the Mississippi River. Barge CIF NOLA DDGS offers are $16 lower for spot positions this week at $256/MT and are down $10-12/MT for November and December. FOB Gulf offers have followed a similar trend with October offers down $20/MT this week while November and December positions have pulled back $14-16/MT. Offers for 40-foot containers to Southeast Asia are mostly steady/down $2 at $301/MT for spot positions.