6. Distillers Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are predominantly higher this week with Chicago prices steady, CIF NOLA Barge values up $2.25/MT and FOB Gulf prices up as well. Ethanol production was steady this week, leaving near-term supply levels essentially unchanged. FOB ethanol plant DDGS prices are 125 percent of cash corn and 45 percent of Kansas City soybean meal, with the later ratio falling 3 percent from last week as soybean meal values rallied. DDGS, on a per-protein unit basis, are $0.98 less expensive than soybean meal this week, and the 43-cent improvement in that metric (to favor DDGS) should pull more of the ethanol co-product into domestic feed rations.
Merchandisers are reporting prices in Savannah, GA are firm. Other export points are reporting international buyers are reluctant to chase prices higher, resulting in slow trade so far this week. Prices for 40-foot containers for Southeast Asia were $3/MT higher this week at $234.