Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are up $9/MT this week with declining ethanol run rates tightening supplies on the margin. Domestic purchase interest is slow but steady, and merchandisers report most domestic users have filled early fall needs. Kansas City soymeal prices are up $2/MT this week, recovering some of last week’s futures-driven decline. The DDGS/Kansas City soymeal ratio is at 0.52 this week, up from last week’s value of 0.47. The DDGS/cash corn ratio is also higher this week at 0.92, up from 0.82 last week but below the three-year average of 1.10.
Exporters report the DDGS market has been quiet this past week and lower domestic values are helping lower export offers. Barge CIF NOLA values are down $1-3/MT this week while FOB Gulf prices are down $6/MT for spot positions and down $10-12 for fall/winter shipment. Containerized DDGS prices are also lower this week with Southeast Asian buyers remaining quiet. Prices for containerized DDGS are down $3 for spot positions and steady for October forward. The average price for 40-foot containers to Southeast Asia reached $334/MT as of Thursday’s trade.
