Distiller’s Dried Grains with Solubles
DDGS Comments: Cash corn values are $3.51/bushel this week while FOB ethanol plant DDGS are $154.76/MT, down from last week. The DDGS/cash corn value is 112 percent, above the two-year average of 107 percent.
DDGS indications are mixed this week, with some price points/routes slightly up from last week and some slightly down. These minor changes are indicative of a period of flat prices that the trade has been expecting. With logistical challenges from cold weather slowing upriver barge traffic, merchandisers report that DDGS for FOB U.S. Gulf February delivery is mostly unavailable, while March delivery is at $217/MT.
On average, 40-foot containers to Southeast Asian destinations were unchanged this week from last week. Merchandisers report that buyers in China, greater Asia and Southeast Asia are throttling down activities in advance of the Chinese New Year celebration. This widely-celebrated holiday is expected to result in a quiet market for the near-term.
