Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments:
U.S. DDGS are higher this week with continued cold Midwest weather and high natural gas prices curtailing production. The DDGS/cash corn price ratio is down from the prior week at 118 percent and above the three-year average of 110 percent. The DDGS/soymeal price ratio stands at 0.51, down from the prior week and above the three-year average of 0.42.
Merchandisers report that domestic and international customers are waiting to see how natural gas curtailments will impact ethanol production and DDGS supplies before booking. Trade is reported as “coming in waves” this week, with flurries of activity followed by quiet markets. The barge market has reportedly been volatile this week with early-week panic buying giving way to softer trade Wednesday afternoon and Thursday. Reasons for the lower late-week trade include more favorable weather forecasts and greater barge availability. As of Thursday afternoon, Barge CIF NOLA values are up $2/MT for March but down $4-5/MT for April/May. FOB NOLA offers are up $13/MT for March at $337 with April/May up $1-6/MT.
