Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are steady to $2/MT lower this week as ethanol run rates and DDGS production continue to recover. After rising 11 percent two weeks ago, ethanol output rose another 6 percent last week. High soymeal costs are reportedly pushing livestock feeders to pursue DDGS more aggressively, but most have already filled near-term needs, leaving the market with a weaker tone.
The DDGS/Kansas City soymeal ratio is at 0.51 this week, down from last week and above the three-year average of 0.50. The DDGS/cash corn ratio edged higher this week to 1.08, down from last week’s value of 1.12 and above the three-year average.
On the export market, Barge CIF NOLA prices are steady to $1/MT lower and are averaging $334/MT for February through April shipment. FOB NOLA offers are down $2-3/MT this week at $338-339/MT while U.S. rail rates are up $5. Finally, softer ocean freight markets are allowing offers for 40-foot containers to Southeast Asia to ease and values are down $20/MT this week at $394.
