Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are down $2.50 this week, with large ethanol run rates pushing additional product into the market while domestic users have already secured the last of their Q4 2021 needs and are well-covered for January. Kansas City soymeal prices are down $5/MT this week as the market continued to rebalance from its surprise rally earlier this fall. The Kansas City soymeal/DDGS ratio fell to 0.47 this week, down from 0.48 last week and equal to the 3-year average. The DDGS/cash corn ratio reached 0.86 this week, down from 0.89 last week and below the 3-year average of 1.08.
Brokers and exporters again report that DDGS demand is quiet on the export market with rumors of GRIs adding volatility to the market. The consensus now is that sellers have escaped the GRIs but offers have yet to decline in response. Barge CIF NOLA values are steady/down $2/MT this week while FOB NOLA offers are steady. U.S. rail rate are up $2-5/MT while 40-foot containers to Southeast Asia are up $1/MT at $355/MT. Notably, offers for containerized DDGS to Vietnam and Taiwan are down $7/MT this week while other destinations (e.g., Malaysia and Thailand) are $3-6/MT higher.
