Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Cash corn prices are slightly lower across the U.S. this week, with basis weakening slightly. Prices for DDGS FOB ethanol plants are pulling back from their recent rally, moving $2/MT lower this week while Kansas City soymeal prices are steady. DDGS are priced at 185 percent of cash corn values, up from last week and above the three-year average of 106 percent. The DDGS/cash corn ratio remains at its highest level since 2016. The DDGS/soymeal price ratio is 0.64, down from the prior week and above the three-year average of 0.42.
DDGS prices are lower this week but merchandisers report the market feels as if it hit a bottom on Tuesday. With corn and other ag commodity futures turning higher, support has re-entered the DDGS market. Barge CIF NOLA values are quoted at $219/MT for May delivery while FOB NOLA offers are around $225/MT for the same position. U.S. rail rates are down $9-11/MT from last week while 40-foot containers for Southeast Asia are $14/MT lower at $268/MT for June shipment.
