Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Cash corn prices are slightly lower across the U.S. this week with basis narrowing to 13 cents under March futures. Prices for DDGS FOB ethanol plants are $1.50/MT lower, following a sharp decrease in Kansas City soymeal prices. DDGS are priced at 108 percent of cash corn values, steady with last week and above the three-year average. The DDGS/soymeal price ratio is 0.49, higher than the prior week and above the three-year average.
DDGS markets are still quiet this week as traders emerge from the holiday lull. Merchandisers report active inquiries from Asian buyers, but sales are slow so far. Barge CIF NOLA values are $1-2/MT lower this week but forecasts for winter weather across much of the Midwest this weekend/early next week could tighten the market due to logistics issues. FOB Gulf values are $3/MT lower for spot shipment while deferred positions are mostly steady. Asking prices for 40-foot containers to Southeast Asia are steady for January shipment at $246/MT while February/March values are slightly lower.
