Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are higher for nearly all origins/destinations this week. Merchandisers are reporting buyers are trying to hold out for a break in prices but are then left scrambling to buy when asking prices remain firm.
Weekly ethanol production was steady last week, which is keeping near-term DDGS supplies moderately tight. The ethanol industry is heading into its seasonal spring maintenance period, which will involve short-term plant showdowns and further supply reductions. Buyers are trying to fill their needs ahead of this seasonal event, which is contributing to this week’s higher prices.
FOB ethanol plant DDGS prices are steady this week at $164/MT while barge CIF NOLA values moved $15/MT higher and FOB NOLA prices rose $10/MT. Prices for DDGS CIF Southeast Asia increased $7/MT to $240/MT. Notably, the average price increase for product destined for Southeast Asia for April and May shipments was $5/MT while prices for June shipments to these destinations increased $10/MT.