DDGS prices are higher for nearly all origins/destinations this week.
Merchandisers are reporting buyers are trying to hold out for a break
in prices but are then left scrambling to buy when asking prices to
remain firm.
Weekly ethanol production was steady last week, which is keeping
near-term DDGS supplies moderately tight. The ethanol industry is
heading into its seasonal spring maintenance period, which will
involve short-term plant showdowns and further supply reductions.
Buyers are trying to fill their needs ahead of this seasonal event,
which is contributing to this week’s higher prices.
FOB ethanol plant DDGS prices are steady this week at $164/MT
while barge CIF NOLA values moved $15/MT higher and FOB NOLA
prices rose $10/MT. Prices for DDGS CIF Southeast Asia increased
$7/MT to $240/MT. Notably, the average price increase for product
destined for Southeast Asia for April and May shipments was $5/MT
while prices for June shipments to these destinations increased
$10/MT.