Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are $7/MT lower this week as increased production and a pullback in corn and soymeal futures pressure values. The DDGS/Kansas City soymeal ratio was down from last week at 0.45 and below the three-year average of 0.49. The DDGS/cash corn ratio fell from the prior week to 0.91 and below the three-year average of 1.06.
U.S. rail rates are lower this week as logistics issues continue to hamper than market. Offers for rail-delivered DDGS into California or Texas are down $2-3/MT this week while offers into the PNW fell $15/MT.
Barge CIF NOLA DDGS values are down $15/MT for spot shipment but saw better support in deferred positions. FOB NOLA values are down $11/MT for last-half August and September shipment and down $16/MT for October. Offers for 40-foot containers to Southeast Asia are down $3/MT this week amid the pullback in ocean freight and domestic DDGS values.