Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are continuing their way higher this week with FOB ethanol plant values up $5/MT and Barge CIF NOLA prices $4/MT higher. Kansas City soymeal climbed $10/MT, which is helping support DDGS values and DDGS inclusion in feed rations. The per-protein unit cost of DDGS is $1.69 less than that of soymeal, roughly equal with last week’s difference and up from -$2.34 this time last year.
On the export market, FOB NOLA DDGS are $10/MT higher and valued at 136 percent of FOB NOLA corn. The DDGS/corn ratio is at its highest point in at least two years as international DDGS demand remains robust. The difference between FOB NOLA-Barge CIF NOLA values widened again this week, increasing netback to merchandisers with river access, which should keep pulling product to the export market. Prices for DDGS CIF Southeast Asia rose $12/MT on average this week.