Distillers Dried Grains with Solubles (DDGS)
DDGS Comments: Merchandisers are reporting a very quiet week in DDGS trade. Prices are holding steady and neither buyers nor sellers are eager to push the market. Traders are noting near-term production is tight and that the trade is beginning to push forward. The carry is relatively flat in the domestic market but the freight increases traders expect to happen in November or December are pushing the export market into a steeper carry.
Prices for DDGS delivered by truck to Chicago increased $3/MT this week to $132. CIF NOLA Barge prices were steady as logistics issues continue to diminish. FOB Gulf quotes were steady/lower with limited buying or selling interest and averaged $177/MT. DDGS delivered via rail to the PNW increased $5/MT to $193 this week.
Domestically, DDGS values are 38 percent of Kansas City soybean meal and 104 percent of cash corn. Stronger soybean meal prices have made the ethanol co-product more competitive and the cost per-protein unit favors DDGS by $1.80.
On the export side, exporters are reporting overseas buyers are not aggressive in buying with their immediate needs filled. Some traders are noting an uptick in Vietnamese demand but also that asking prices are below the market, once fumigation costs are included. Prices for DDGS CIF Southeast Asia were steady to $1/MT higher this week, averaging $201/MT. Prices for Bangladesh rose $7/MT, the largest gain this week, followed by prices for DDGS CIF Thailand which rose $3/MT. Prices for other Southeast Asia destinations were steady this week.