Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are mixed in the domestic market this week following last week’s modest pricing strength. Ethanol run rates drifted lower again last week, which helped support DDGS values, though buyers remain noncommittal as new crop feed grain supplies look ample. Despite buyers’ hesitancy, offers are firm this week as sellers are seeing “better arbitrage opportunities”. The DDGS/Kansas City soymeal ratio is down from last week at 0.48 and below the three-year average of 0.49. The DDGS/cash corn ratio is lower this week at 0.90 and is below its three-year average (1.07)
Barge CIF NOLA DDGS values are $11/MT higher for September positions this week while FOB NOLA offers are up $10/MT to $314 this week for spot positions. The DDGS container market followed gains in the FOB market and offers for 40-foot containers to Southeast Asia rose $9/MT to $397 this week.
