Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Cash corn prices are 2 percent lower across the U.S. this week with basis narrowing to 21 cents under September futures (-21U). Prices for DDGS FOB ethanol plants are steady this week while Kansas City soymeal prices are down $7/MT as soymeal futures have weakened. DDGS are priced at 116 percent of cash corn values, up from the prior week and above the five-year average ratio of 109 percent. The DDGS/soymeal price ratio is 0.43, above both last week’s value and the three-year average.
Offers for DDGS on the export market are mostly steady this week with Barge CIF NOLA values down $3/MT for September shipment and up $5/MT for October. FOB Gulf values are down $1/MT for spot shipment and up $3/MT for October as demand for fall positions is increasing. U.S. rail rates are slightly lower this week while asking prices for 40-foot containers to Southeast Asia are up $4-7/MT. The average asking price for spot containers to Southeast Asia is $240/MT this week.