Distiller’s Dried Grains with Solubles
DDGS Comments: FOB ethanol plant DDGS values continued their upward momentum this week, up nearly $4 from last Friday’s close. Cash corn prices were up $1.59 from Friday, and the DDGS/cash corn value stands at 106 percent of its two-year average.
DDGS container rates to Asia were generally up this week, with 40-foot containers to the Philippines seeing an increase of $6/MT from last week. Containers to Taiwan, Indonesia, Malaysia, Vietnam, China and Japan were up as well. Activity in Asian markets remains brisk, with merchandisers reporting sales to Indonesia and Vietnam amid a period of strengthening prices.
FOB vessel U.S. Gulf for August shipment is $220/MT. In analyzing historical data, DDGS at the Gulf continue their steady increase that started in early 2017. In the freight market, merchandisers report limited GRIs from carriers that were already fairly low relative to others.