6. Distillers Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are steady/slightly lower this week with lower supplies and rising feed demand. Cash soybean meal values are steady while FOB ethanol plant DDGS fell $2/MT this week, leaving the per-protein unit cost of DDGS $0.66 lower than soybean meal. Barge CIF NOLA prices are steady this week while FOB NOLA prices are $2/MT lower on light trading volume. FOB NOLA prices are 124% of FOB NOLA corn values, which is at the upper end of the ratio’s two-year trading range. Prices for 40-foot containers destined for southeast Asia are $1/MT higher on average, but with light trading volume.
Merchandisers are reporting a quiet week as buyers are sidelined due to firm and steady asking prices. Buyers are hoping for a downward break in prices, but most sellers are sticking to asking prices with cold weather keeping domestic feed demand elevated. Moreover, natural gas prices are higher which may further slow ethanol production and keep DDGS supplies tight.