Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are $5/MT lower this week as a pullback in soymeal futures and a “wait and see” mentality ahead of the February WASDE allowed offers to soften. Ethanol run rates remain strong, which is helping push more product onto the domestic market. Better logistics have allowed product to flow more easily to the river system, which has weakened values there as well.
The DDGS/Kansas City soymeal ratio is at 0.50 this week, steady with last week and equal to the three-year average of 0.50. The DDGS/cash corn ratio edged lower this week to 1.09, below last week’s value and above the three-year average of 1.06.
Barge CIF NOLA offers are down $4-5/MT this week while FOB NOLA offers are down $4 for spot positions and down $5 for April/May. Offers for 40-foot containers to Southeast Asia are down $8-9/MT this week at an average of $395.
The latest trade data from the U.S. Census Bureau showed December DDGS exports of 0.887 MMT, up 22 percent from the prior month and a three-month high. Mexico, South Korea, and Colombia were the largest buyers in December. In total, the U.S. exported 11.01 MMT of DDGS in CY 2022, down 5 percent from the prior year.
