Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are lower again this week amid the weaker tone in corn and soybean meal futures. Brokers report active DDGS trade for the week with values generally sliding lower. Sources note bid/ask spreads are wide, resulting in somewhat choppy trade, and indicate that the weakness in cattle prices has prompted some buyers to adopt a hand-to-mouth procurement strategy.
The DDGS/cash corn ratio is firmer this week at 1.36 and above the three-year average of 1.03. The DDGS/KC soymeal ratio is higher at 0.47 this week and is approaching the three-year average of 0.51.
Barge CIF NOLA offers are down $3/MT for January and down $4-5 for February and March this week amid continued declines in barge freight. Brokers note that sellers are trying to move barges, which is largely responsible for the weakness. FOB NOLA offers are down $5 at $275/MT for January shipment and down $7-8/MT for February and March. Prices for containerized DDGS shipped to Southeast Asia are $5/MT lower this week due to lower values in the U.S. domestic market and steady/lower ocean freight markets. January offers average $318/MT C&F Southeast Asia with a -$3/MT carry into February and a flat carry across March, April and May.
