Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are steady this week with trade declining as the December holidays approach. Buyers have all but fully booked near-term needs and purchasing activity is slowing down. Kansas City soymeal prices are up $3-5MT this week as a rally in the now-expired December futures contract helped cash values rise. Spot soymeal availability is tight, sparking the recent market strength, but futures have pulled back from this week’s highs in profit taking and liquidation trade. The Kansas City soymeal/DDGS ratio is unchanged from last week at 0.45 but is down from the three-year average of 0.47. The DDGS/cash corn ratio rose to 0.86 this week, above last week’s value of 0.85 but below the three-year average of 1.08.
Once again, DDGS demand is quiet on the export market, but Barge CIF NOLA and FOB NOLA offers are higher this week. Barge rates are up $4-7/MT for Q1 positions while FOB Gulf offers are up $2-5/MT for the same period. U.S. rail rates are lower this week, with rates for product into the PNW declining $10-13/MT for January/February. Brokers also report containerized DDGS markets are steady with the prior week and that buying interest is waning seasonally with the holidays approaching.