Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are down $8/MT this week amid continued expansion in ethanol run rates and DDGS supplies. Industry sources say ethanol plants are increasingly cautious to secure corn before making sales, expecting corn supplies to tighten this summer. The DDGS/cash corn ratio is 1.03, down from 1.09 last week and below the three-year average of 1.10. Similarly, the DDGS/Kansas City soymeal ratio fell slightly to 0.48, down from 0.52 the prior week but above the three-year average of 0.43.
Merchandisers and exporters report some early-week business was done but trade has been slow following the USDA reports. The soymeal futures rally helped support DDGS pricing ideas, however, and Barge CIF NOLA offers are up $12-17/MT with FOB NOLA offers up $31/MT for spot positions and up $22/MT for May/June. U.S. rail rates are up $21/MT on average while 40-foot containers to Southeast Asia are up $9/MT for April and up $1-4/MT for May/June at $343/MT.
