Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Stronger domestic demand and rising corn prices are pushing FOB ethanol plant DDGS prices $6.50/MT higher this week. Rail-delivered DDGS to California are up $17/MT this week while offers for product at KC rail yards or Elwood, IL are up $5-7/MT. The rally in the soymeal market is continuing and Kansas City soymeal prices are up $3.50/MT this week. DDGS are priced at 113 percent of cash corn values, equal with last week and above the five-year average ratio of 109 percent. The DDGS/soymeal price ratio is 0.43, above last week’s value and the three-year average of 0.42.
Industry sources note limited supply and some short covering continue to help the barge market firm. Barge CIF NOLA offers are up $7/MT for September positions and up $4 for October/November. FOB Gulf offers are largely steady this week as buyers remain quiet. Exporters say containers are offered at a discount to bulk vessels, particularly for Asian destinations, but that bulk prices have limited downside risk due to tight supplies and elevations expected this fall.
