Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are lower this week with recent declines in corn and soymeal futures pressuring the broader feedstuffs markets. With more favorable August weather forecasts improving the outlook for U.S. grain production, buyers have slowed making purchases for deferred positions and are focused on the spot market. The DDGS/cash corn ratio ticked higher this week to 1.09 and is above the three-year average of 1.02. The DDGS/soymeal ratio was unchanged at 0.43 this week and below the three-year average of 0.50.
Barge CIF NOLA DDGS offers are mixed this week with August down $13/MT while September/October offers are down $9-10/MT. FOB NOLA offers are also lower with spot positions down $15 to $268/MT and deferred positions down $7-10 from last week’s values. U.S. rail rates are also $15/MT lower for the week while offers for 40-foot containers to Southeast Asia are down $9/MT at $309 for August shipment amid another week of lower ocean freight rates.
