Distillers Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are stronger this week with increased feed demand in the U.S. and Asian buying interest supporting prices. FOB ethanol plant prices have worked their way $6/MT higher in the past two weeks; the onset of winter across the Midwest is boosting feed demand. FOB ethanol plants DDGS values are 39 percent of Kansas City soybean meal, higher than last week, and the per-protein unit of DDGS is $1.66 less than soybean meal.
CIF NOLA barge prices are higher due to issues in parts of the river system, including stoppages on the Ohio river due to higher water. CIF NOLA prices rose $6.50/MT this week to their last quote at $170/MT. FOB NOLA prices are also higher as players with long positions or product to sell raise asking prices in response to demand-boosting news from Asia. FOB NOLA prices are up $7/MT to $182.25 as of their last quote.
Internationally, the Asian market continues to firm with noted buying support. Prices to China and Vietnam are up $2-3/MT while other destinations saw lower bids. On average, 40-foot containers to Southeast Asia were steady this week at $202/MT. Early week buying was attributed to President Trump’s visit to Asia that was expected to improve trade relations while late-week price increases were due to announced tax/tariff changes in the region.