Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Cash corn prices are weaker across the U.S. this week with the futures markets pressuring values. Basis has firmed to 9 cents under May futures, however, despite the decline in flat prices. Prices for DDGS FOB ethanol plants are down $1/MT while cash soybean meal prices have rallied $4/MT on news of Argentina’s higher export taxes. DDGS are priced at 109 percent of cash corn values, up from last week and slightly above the three-year average. The DDGS/soymeal price ratio is 0.49, steady with the prior week and above the three-year average.
Merchandisers are reporting that the DDGS markets are quieter this week amid global uncertainty about the economic outlook. Exporters report that international buyers pushed prices to the top end of their recent trading range and are now waiting before extending coverage. Barge CIF NOLA values are down $1/MT, with FOB Gulf offers declining an equal amount. Prices for containers to Southeast Asia are $2/MT higher, however, reaching $255/MT for March shipment.
