Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are continuing their rally despite ethanol plants’ run rate snapping a four week decline last week. DDGS prices in the U.S. Midwest are averaging $330/MT ($299/short ton), which is the highest recorded price since at least 2016. Soymeal prices have pulled back in both the futures and Kansas City cash markets over the past month, but that does not seem to be discouraging DDGS values. The Kansas City soymeal/DDGS ratio is hit 0.64 this week, up from 0.60 last week and is above the three-year average of 0.48. The DDGS/cash corn is up from last week at 1.05 and essentially in-line with the three-year average of 1.06.
On the export market, brokers and exporters report that trade has been quiet, and values are down from last week. Barge CIF NOLA offers are down $10-12/MT at $350/MT for May/June shipment while FOB Gulf offers are down $9-10/MT at $370 for spot shipment. This week’s sideways/slightly higher trade in ocean freight rates has kept containerized DDGS offers steady. The average offer for 40-foot containers to Southeast Asia hit $459/MT, unchanged from the prior week.