Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Cash corn prices are lower across the U.S. this week with declining CBOT values and larger farm sales pressuring cash bids. Basis is steady at 22 cents under September futures (-22U). Prices for DDGS FOB ethanol plants are up $1.00/MT this week while Kansas City soymeal prices are down $7.40/MT as soymeal futures remain defensive. DDGS are priced at 113 percent of cash corn values, up from the prior week and above the five-year average ratio of 109 percent. The DDGS/soymeal price ratio is 0.43, above the prior week and slightly higher than the three-year average of 0.42.
DDGS prices in the Gulf are lower this week as exporters work to keep prices competitive and attractive. Barge CIF NOLA offers are down $6/MT while FOB Gulf asking prices are down $4/MT at $190 for August shipment. A mixed ocean freight market, combined with competitive export offers, has pushed prices for 40-foot containers to Southeast Asia down $8/MT for spot shipment, averaging $242/MT this week.
