Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are $5-6/MT higher this week as the seasonal ethanol plant maintenance season shutdowns drawdown supplies. After a few weeks of declining values, end-users are moving to book product again and inquiries for summer delivery are increasing.
The FOB ethanol plant DDGS/cash corn price ratio rose to 1.11 this week, up from 1.04 last week and above the three-year average of 1.06. The DDGS/Kansas City soymeal ratio rose this week and hit 0.55, up from last week’s value of 0.54 and still above the five-year average of 0.50.
The pipeline for product to the river system remains tight again this week but barge CIF NOLA prices are steady/$2 lower and offered at $339 for LH April and $332 for May. FOB NOLA offers, however, are $3-4/MT higher and average $343/MT for spot positions with a -$5 carry to May. Offers for 40-foot containers to Southeast Asia are higher this week and average $399/MT for Q2 positions.
