Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: The release of USDA’s WASDE report last week generated significant price movement and pushed cash corn values down; they’ve regained some of those losses as of today’s close. Meanwhile, FOB ethanol plant DDGS values are on their 5th straight week of gains, up nearly $5 from last Friday’s close. Note that DDGS will see increased demand from domestic cattle feeders into the Q4 2018 and Q1 2019 period. The DDGS/cash corn value stands at 106 percent of its two-year average.
DDGS at the Gulf fell this week as markets softened somewhat in response to the recent WASDE report. This dynamic has Asian buyers, among others, showing renewed interest. DDGS FOB Gulf are at $208 for September shipment. Container rates to Southeast Asia are down on average $7/MT from last week, while container rates to Bangladesh and Myanmar are mostly unchanged. Container rates to Japan are down $4/MT from last week and stand at $247/MT for September shipment. Merchandisers reported sales to Indonesia and Vietnam.