DDGS Weekly Market Report – September 5, 2019

Cash corn prices are lower across the U.S. this week in sympathy with futures and presently average $3.42/bushel, 10 cents lower than last week. DDGS FOB ethanol plant prices are $3/MT higher, finding support from the $7.25/MT rally in Kansas City soymeal prices. DDGS are priced at 104 percent of cash corn values, up from last week but below the three-year average of 106 percent. The DDGS/soymeal price ratio is 0.43, in-line with last week and slightly above the three-year average.

Merchandisers and exporters note that prices for DDGS FOB NOLA are lower (down $2/MT) this week following the pressure in corn and soymeal futures. Prices for 40-foot containers to Southeast Asia are steady this week at $232 with spot prices firmer than those for deferred positions. Exporters are saying international markets have been somewhat quiet this week but that Vietnam buyers are actively inquiring on offerings and that Indonesian buyers have secured product for October shipment.