Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are $4/MT below last week’s values, but the market is starting to stabilize. Higher corn and soymeal futures following the July WASDE are offering support, as is a reduction in ethanol production. Kansas City soymeal prices are up $21/MT this week, pushing the DDGS/Kansas City soymeal ratio lower to 0.45, down from 0.49 last week. The DDGS/cash corn ratio is lower this week at 0.71, down from 0.77 last week and the three-year average of 1.13.
Barge CIF NOLA and FOB NOLA DDGS prices are higher this week, with greater strength noted for October/November/December position. August and September FOB NOLA offers are up $7-8/MT this week while Barge rates are steady/$3/MT higher, increasing netbacks to those with river access. U.S. rail rates are mixed but generally $5/MT higher. Offers for 40-foot containers to Southeast Asia are down $5-7/MT this week, though sources note an increasingly wide difference between the high and low offers.
