DDGS Weekly Market Report – March 16, 2023

DDGS values are $1-3/MT higher this week amid an uptick in domestic demand and support from stronger corn futures. Weaker soymeal futures have reportedly capped some of DDGS’ upside potential, but the ethanol co-product remains highly competitive in feed rations. The FOB ethanol plant DDGS/cash corn price ratio rose to 1.17 this week, up from 1.16 last week and above the three-year average of 1.06. The DDGS/Kansas City soymeal ratio also ticked higher and hit 0.52, up from last week and the three-year average of 0.50.

Barge CIF NOLA offers are steady for spot positions and $2-3/MT higher for May and June due to another week of rising barge freight. FOB NOLA offers are also $2 higher for Q2 positions and average $346/MT for April. This week’s offers for 40-foot containers to Southeast Asia are $3 higher amid firming ocean freight values and average $395 for Q2 shipment.