6. Distillers Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are steady/higher this week as ethanol production declines in the U.S. limit supplies and as international demand recovers from its holiday lull. FOB ethanol plant DDGS are $2/MT higher this week, as cold weather across the Midwest increases use in feed rations and as last week’s 5 percent decrease in ethanol production limits supplies. Soybean meal values are steady after the holidays and FOB ethanol plant DDGS prices are 46 percent of Kansas City soybean meal. Domestically, DDGS retain a $0.79 per-protein unit cost advantage over cash soybean meal.
Internationally, FOB Gulf prices are steady on holiday-reduced demand. The average price for January shipment is $203/MT with February shipments $3/MT lower. Prices for March shipment are just under $200/MT as DDGS supplies should increase heading into the spring. Prices for 40-foot containers to Southeast Asia are $226.5/MT, $3 above the pre-holiday (December 21, 2017) weekly average. Merchandisers are reporting prices to Vietnam are the strongest of Asian destinations, rising $6/MT from December 21.