Distillers Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices have remained elevated since news of China’s VAT reduction but have failed to make new highs. It’s been a generally quiet post-holiday week. Prices at the U.S. Gulf firmed slightly from last week while stronger increases were seen in prices for rail-delivered DDGS to the U.S. PNW and California. Containers to Asia were mixed, with increases seen for Indonesia, Malaysia and Japan and decreases for containers to the Philippines and Bangladesh. Merchandisers report an uptick in interest from Korean, Indonesian and Vietnamese buyers.
The onset of winter weather for the Midwest has boosted DDGS feed demand. FOB ethanol plant DDGS are priced at $118/MT, down slightly from last week. DDGS are valued at 38 percent of Kansas City soybean meal and 104 percent of cash corn values, with the ethanol co-product becoming more competitive since last week. DDGS hold a $1.76 per-protein unit cost advantage versus soybean meal, up from last week which will continue to pull DDGS into feed rations.