Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are mixed/lower this week and are caught between increased ethanol run rates and DDGS output, corn futures pulling back, and soymeal futures surging higher. Buyers are moving in the market when advantageous but are still waiting before booking much deferred product. The DDGS/cash corn ratio ticked lower this week to 0.97 and is below the three-year average of 1.02. Similarly, the DDGS/soymeal ratio dropped to 0.4 this week, below the three-year average of 0.50.
Barge CIF NOLA DDGS offers are mixed this week with August down $1/MT while September/October offers are steady/up $2/MT. FOB NOLA offers are higher with spot positions up $6 to $284/MT and deferred positions rising $4-5 from last week’s values. U.S. rail rates are steady for nearby positions and up $2-3 for Q4. Finally, offers for 40-foot containers to Southeast Asia are down $2/MT at $318 for August shipment amid another week of lower ocean freight rates.
