Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are steady/higher this week as ethanol output contracted for the second straight week and corn and soymeal futures stabilized. Buyers remain focused on the spot market amid the favorable weather and forecasts for large corn and soybean production this year. The DDGS/cash corn ratio ticked higher this week to 1.12 and is above the three-year average of 1.02. The DDGS/soymeal ratio was unchanged at 0.46 and below the three-year average of 0.50.
Barge CIF NOLA DDGS offers are mostly lower this week with September and Q4 positions down $2-3/MT. FOB NOLA offers are also lower by $4/MT compared to last week with September offers averaging $268/MT. U.S. rail rates are $2-4/MT higher for the week while offers for 40-foot containers to Southeast Asia are up $9/MT at $309 for September shipment and up $5/MT for Q4 as ocean freight rates strengthen slightly.
