Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are $4/MT lower this week as the end of the seasonal ethanol plant maintenance season bolsters output and supplies. Weaker soymeal futures have also pressured market values this week, despite the fact that buyers are actively booking domestic needs.
The FOB ethanol plant DDGS/cash corn price ratio fell to 1.06 this week, down from 1.11 last week equal to the three-year average. The DDGS/Kansas City soymeal ratio fell this week and hit 0.54, down from last week’s value of 0.55 and still above the five-year average of 0.50.
Weaker barge rates and pressure on interior DDGS values is pressuring DDGS export prices this week. Barge CIF NOLA offers are down $3/MT for spot positions while June/July offers are down $4-5/MT. FOB NOLA offers are down $1 for spot shipment but up $2/MT for June and July while offers for 40-foot containers to Southeast Asia are down $13/MT at $386/MT.
