Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are up $6/MT this week after demand reappeared after last week’s dip in prices. Ethanol run rates continue to fall, which is helping tighten supplies as well. Kansas City soymeal prices are down sharply this week due to the recent decline in futures prices. The DDGS/Kansas City soymeal ratio is at 0.50 this week, up from last week’s value of 0.47. The DDGS/cash corn ratio is also higher this week at 0.82, up from 0.79 last week but below the three-year average of 1.12.
Increased market activity is supporting DDGS prices on the export market, with Barge CIF NOLA offers up $8/MT for September positions and up $20 for October/November. FOB Gulf offers are $11-15 higher this week at $266/MT for spot shipment. U.S. rail rates are following the trend, rising $16-18 this week, while 40-foot containers to Southeast Asia are up $9/MT from last week. The average offer for containerized DDGS to southeast Asia is $337/MT this week.
