Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are steady/higher this week with corn and soymeal futures respective rallies offering support. Merchandisers report there are fewer offers available after corn futures’ limit-up day on Thursday as sellers and buyers reassess market fundamentals. The DDGS/cash corn ratio is 0.90, down from the prior week and below the three-year average of 1.10. The DDGS/Kansas City soymeal ratio is down from last week at 0.48 and above the three-year average of 0.42.
On the export front, DDGS prices are sharply following this week’s rally in multiple CBOT markets. Barge CIF NOLA offers are up $10-16/MT while FOB Gulf offers are up $21-23/MT for May-July. U.S. rail rates are higher with noted increases for July-September positions. Offers for 40-foot containers to Southeast Asia are higher this week but have so far lagged gains in the barge or FOB markets. The average offer for containerized DDGS to Southeast Asia hit $332/MT for May shipment this week and $339/MT for June.