Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are $5/MT higher this week with buyer interest continuing to strengthen following the holidays. The move by livestock feeders to increase DDGS use continues as soymeal prices are holding near seven-month highs. The DDGS/soymeal ratio is at 0.44 this week, up from 0.43 last week and below the three-year average of 0.47. The DDGS/cash corn ratio is at 0.91 this week, up from 0.88 the prior week but below the three-year average of 1.07.
On the export market, DDGS values are holding steady with two weeks of slower ethanol run rates and DDGS production helping tighten supplies. Barge CIF NOLA and FOB NOLA prices are each down $1-2/MT for Q1 shipment while April barges are up $5/MT. U.S. rail rates are steady/up $1, on average, but offers for product delivered to KC rail yards are up $5-6/MT.
Prices for DDGS containers to Southeast Asia are up modestly this week, rising $2/MT for February positions and up $1/MT for March and April. Brokers report a gradual increase in buying interest, but that markets remain quiet overall. Prices for 40-foot containers into Southeast Asia averaged $362/MT so far this week.
