Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS values continue to rally with FOB ethanol plant values rising another $7.50/MT this week. The market has been supported by stronger soymeal prices, with Kansas City offers rising $16.50/MT this week to $485.50/MT. The DDGS/cash corn price ratio currently sits at 119 percent, up from last week and above the three-year average of 110 percent. The DDGS/soymeal ratio is up from last week at 50 percent and is above the three-year average of 42 percent.
Industry sources say domestic DDGS demand remains firm amid the rally while export interest has slowed this week. Buyers for Southeast Asia are reportedly reluctant to show interest out of concern that will push offers higher. Sources say there is a lot of interest waiting for offers to decline even slightly.
Barge CIF NOLA offers are up $9-12/MT this week while FOB NOLA offers are up $5/MT on average. U.S. rail rates are largely steady while offers for 40-foot containers to Southeast Asia are down $1-3/MT at an average of $348/MT for February shipment.