Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are steady/higher this week with a pullback in ethanol run rates and higher soymeal values offering support. FOB ethanol plant values are up $2/MT while Kansas City soymeal values are up $10/MT. The Kansas City soymeal/DDGS ratio increased to 0.59 this week, up from 0.57 last week and above the three-year average of 0.48. The DDGS/cash corn ratio fell to 1.1 this week, down from 1.13 last week but still above the three-year average of 1.06.
Barge CIF NOLA and FOB Gulf DDGS values are sharply lower amid improving river navigation and increased barge availability. Barge CIF NOLA DDGS values are down $40/MT this week for May/June while FOB NOLA offers are down $30/MT at $382 for May shipment. Prices for containerized DDGS into southeast Asia are lower this week following the decline in ocean freight. Brokers indicate offers for 40-foot containers to Southeast Asia are down $30/MT on average this week at $462 for May, June, and July shipment.