Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are $5/MT higher this week as a second consecutive week of declining ethanol run rates has pared back supplies. Soymeal futures have stabilized near the $450 level, which has helped bring certainty and higher values to the broader feedstuff markets. Additionally, the bitter cold temperatures across the Midwest this week will boost demand for livestock feed, which has further supported DDGS values.
The DDGS/Kansas City soymeal ratio is at 0.52 this week, up from last week and above the three-year average of 0.50. The DDGS/cash corn ratio edged lower this week to 1.04, up from last week’s value of 1.01 but still below the three-year average of 1.06.
On the export market, Barge CIF NOLA prices are higher for a third straight week with spot offers up $5 and March positions up $12/MT. FOB NOLA offers are $3-8/MT higher this week with greater strength observed in February and March, rather than for spot, positions. U.S. rail rates are $19/MT higher this week as the winter storm that will cover much of the U.S. will impede logistics. Finally, offers for 40-foot containers destined for Southeast Asia are up $6-7/MT at $423 for February shipment.
