Market Perspectives – February 8, 2018

DISTILLER’S DRIED GRAINS WITH SOLUBLES (DDGS)

DDGS Comments: FOB NOLA DDGS are slightly lower this week at $203/MT, following CIF NOLA prices which dropped to $191/MT. Merchandisers are reporting that, since CIF NOLA values dropped last week, prices have softened for product destined for Asia. However, the lower prices have increased buying activity and exporters are reporting large volumes sold/exported.

FOB ethanol plant DDGS are $1/MT higher this week and are valued at 46 percent of KC soybean meal and 125 percent of cash corn. The per-protein unit cost of DDGS is $0.83 less that than of soybean meal, with the spread narrowing since last week. However, soybean meal futures’ recent rally should work to make the ethanol co-product more competitive in feed rations.