Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are $7/MT higher this week as ethanol run rates remain steady and corn, soymeal, and other feedstuff markets strengthen significantly. The sustained rally in corn futures has reduced the number of offers in the market. The DDGS/cash corn ratio is 0.87, down from the prior week and below the three-year average of 1.10. The DDGS/Kansas City soymeal ratio is steady with last week at 0.48 and above the three-year average of 0.42.
On the export front, DDGS prices are sharply higher. Barge CIF NOLA offers are up $6-7/MT while FOB Gulf offers are up $22-23/MT for May-July. U.S. rail rates are higher with spot offers up $11/MT and June/July up $8/MT. Offers for 40-foot containers to Southeast Asia are higher this week and higher ocean freight rates for summer/Q3 positions are supporting deferred containerized DDGS offers. The average offer for containerized DDGS to Southeast Asia hit $340/MT for May shipment this week and $350/MT for June/July.