Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are firmer this week with gains in corn and physical soymeal values helping support the ethanol co-product. The strength in grain futures has helped put a bid under DDGS values despite last week’s 6 percent increase in ethanol and DDGS output.
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 rose to 0.45 this week and remains below the three-year average of 0.51.
Barge CIF NOLA offers are up $3/MT for December and steady/up $2 for January and February this week despite declines in barge freight. FOB NOLA offers steady/$1 higher for December through February shipment and average $285/MT for spot shipment. Prices for containerized DDGS shipped to Southeast Asia are lower this week amid the recent pullback in ocean freight rates. Late December offers are down $6/MT at $323 C&F Southeast Asia with January and February offers down $5 at $322/MT.
USDA’s monthly Grain Crushings report featured 11.722 MMT of corn used for fuel ethanol production in October, a figure up 7.3 percent from the prior month and up 2.9 percent year-over-year. DDGS production rose 5.6 percent from September and hit 1.63 MMT, also up 2.9 percent from the prior year. Corn gluten feed production fell 1 percent from October 2022 to 240,000 MT while corn gluten meal output rose 0.6 percent to 110,000 MT.
