Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Cash corn prices are higher across the U.S. this week, averaging $3.97/bushel while FOB ethanol plant DDGS prices are down $1.95/MT at $142.75/MT. DDGS are priced at 91 percent of cash corn values, down from last week and below the two-year average of 107 percent. Soymeal prices are lower as well, reaching $325/MT this week, which puts DDGS prices at 44 percent of soymeal.
Merchandisers report that many ethanol plants are selling more DDGS on a spot or prompt delivery basis with expectations that ethanol/DDGS production may slow down in the near future. Prices are lower this week but exporters report that active inquiries from Southeast Asia, combined with expectations of slowing production, have created near-term outlooks for higher prices.
Prices for DDGS CIF NOLA barge are $2.50/MT higher this week while FOB Gulf values are slightly lower at $196/MT. Prices for 40-foot containers are $11/MT lower this week at $231/MT for August shipment but increasing international interest has exporters defending offers.
