Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are steady this week with demand picking up and soymeal futures’ bounce from technical support aiding DDGS values. Offers for DDGS in July, August, and September are rising. The DDGS/cash corn ratio is 0.95, down from the prior week and below the three-year average of 1.10. The DDGS/Kansas City soymeal ratio is unchanged from last week at 0.50 and above the three-year average of 0.42.
On the export front, markets are stronger with a decrease in freight values attracting additional buying interest. Barge CIF NOLA offers are up $2-3/MT for Q2 positions while FOB Gulf offers are up $7-8/MT for May-July. U.S. rail rates are mostly steady while 4o-foot containers to Southeast Asia are down $5-6/MT, averaging $335/MT this week for May/June.