Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are higher this week following a large decrease in production due to last week’s cold snap. Ethanol and DDGS production is expected to recover soon, however, helping refill the supply pipeline. Spot prices are expected to firm in March with better barge movement and loadings in locations disrupted by recent cold weather. The DDGS/cash corn ratio rose to 118 percent, up from last week and above the three-year average. The DDGS/Kansas City soymeal ratio climbed to 0.53, up from the prior week and above the three-year average of 0.43.
Merchandisers and brokers report that export business has been slower this week with notable pressure in the CIF market. Spot offers for barges CIF NOLA are down $17/MT this week while FOB Gulf offers are down $14/MT for March and down $3-5/MT for Q2 positions. Brokers again note the bid/ask spread has been wide this week with wide-ranging traded prices.
