Distillers Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices were firm in early trading this week but softened toward the latter half. Merchandisers are reporting international buyers are more interested in deferred shipments while the majority of U.S. production is sold through September. The barge values that underpinned DDGS’ move higher this week have stabilized, leaving merchandisers less room to increase asking prices.
Domestically, DDGS prices are slightly higher this week and are priced at 98 percent of cash corn values. DDGS prices are 37 percent of Kansas City soybean meal values, leading to a $1.82 per-protein unit cost advantage over soybean meal. Production is matching DDGS demand for now and sideways trade is expected going forward, unless corn or soy-complex futures make an outsized move.