Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are up $6.25/MT this week, marking their tenth consecutive weekly gain. Rallies in grain and feedstuff markets beyond DDGS are offering support, as is strong domestic demand. Livestock feeders are preparing for more cold temperatures heading into March, a fact that will boost livestock feed demand. The Kansas City soymeal/DDGS ratio fell to 0.48 this week, down from 0.49 last week but above the three-year average of 0.47. The DDGS/cash corn ratio moved to 0.97 this week, down from 1.0 last week and below the three-year average of 1.06.
Barge freight rate is rising again due to cold temperatures and logistics challenges in the Midwest. Barge CIF NOLA DDGS prices are up $5-7/MT for spot positions while FOB Gulf offers are steady/$2 higher for March – May shipment. U.S. rail rates are roughly $20/MT higher this week with offers for product delivered into the PNW up $18/MT for March shipment.
Exporters and brokers report the market for containerized DDGS to Southeast Asia remains quiet again this week with spotty bids/offers. Offers average $360/MT this week, down from the prior week.
