Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS values are up $4.75/MT this week as production remains below year-ago levels and global feed demand remains strong. Kansas City Soymeal prices are up $19.25/MT this week at $508.25. The DDGS/soymeal ratio currently sits at 0.45, equal with the prior week and above the three-year average of 0.42. The DDGS/cash corn ratio is 114% this week, down from the prior week and above the three-year average of 109 percent.
Brokers and merchandisers report that the DDGS export market has been active in post-WASDE trading, though bid-ask spreads remain wide. Some sources are saying international buyers are now playing catch-up to the rally and are booking some needs but hoping for prices to come down. Sellers, on the other hand, are confident the rally will continue and are defending asking prices.
Barge CIF NOLA offers are $15-16/MT higher this week while FOB NOLA offers are up $20/MT. U.S. rail rates continue to strengthen as well, essentially matching the barge market’s gains. Offers for 40-foot containers to Southeast Asia are up $16/MT on average, though some routes are trading as much as $21/MT higher. The average offers for containerized DDGS to Southeast Asia is $350/MT for February/March/April shipment.
