Distillers Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices were steady this week despite volatility in corn and ag futures market prices. Flagging ethanol production supported merchandisers’ efforts to defend offers while international buyers held to low bids. Despite it being a quiet trade week, pricing consistency aided in slowly narrowing the bid/ask spread.
Nationally, the average FOB ethanol plant price for DDGS increased $3-4/MT to $105.22/MT. Kansas City soybean meal prices were largely steady, pushing DDGS’ per-protein unit cost advantage two cents lower to $1.83. Barge CNF NOLA rates were $3/MT lower at $146/MT.
On the international market, FOB Gulf DDGS were $1/MT lower at $160/MT while corn FOB Gulf prices fell slightly. DDGS are priced at 101 percent of FOB Gulf corn, down from last week and still historically undervalued. Prices for 40-foot containers to Southeast Asia averaged $187/MT this week, steady with the week prior. Freight rates increased this week but CNF Asia prices were unchanged as merchandisers completed trades on tight margins to promote business.