Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Soymeal values reversed the past week’s declines, increasing slightly. Meanwhile, FOB ethanol plant DDGS values continued falling to $125.01/MT. The DDGS/cash corn value remains closely in line with its two-year average. With soymeal values up and DDGS falling, the protein-unit cost advantage that DDGS holds over soybean meal stands at $2.23.
DDGS prices were mostly steady to down slightly this week. DDGS at the Gulf were unchanged from last week, while U.S. rail rates fell slightly. With prices stable, merchandisers are reporting buyer activity from Southeast Asian markets including Vietnam, Thailand, and the Philippines. Bangladeshi buyers are also reportedly active as container rates to that market fell to $267/MT.
Recently released U.S. Census Bureau data showed U.S. DDGS exports in May were up 38 percent from a year ago, with Turkey, Mexico, South Korea, Vietnam, and Thailand the top destinations. Year-to-date reported export volumes are slightly up from the same period last year.