Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are $2-4/MT lower this week as ethanol run rates remain strong and domestic buyers have largely filled near-term needs. End-users were reportedly waiting for soymeal futures to push lower and help cash values ease as well, but futures remain strong and cash bids are increasing as well.
The DDGS/Kansas City soymeal ratio is at 0.53 this week, up from last week and above the three-year average of 0.50. The DDGS/cash corn ratio edged higher this week to 1.10, up from last week’s value of 1.08 and above the three-year average of 1.06.
On the export market, Barge CIF NOLA prices are $1/MT lower and are averaging $333/MT for February through April shipment. FOB NOLA offers are down $1-2/MT this week at $337-338/MT while U.S. rail rates have contracted $14. Finally, softer ocean freight markets continue to allow offers for 40-foot containers to Southeast Asia to move lower. The average offer for Q2 shipment is down $1/MT at $395 this week.
