Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are another $5/MT higher this week as the rallies in corn futures and physical soymeal offer support to the feedstuff markets. The DDGS/Kansas City soymeal ratio was down from last week at 0.47and fell back below the three-year average of 0.49. The DDGS/cash corn ratio fell from the prior week to 0.95 and below the three-year average of 1.06.
U.S. rail rates are mixed this week with merchandisers noting that “railroad velocity and last-mile performance…[are] causing huge issues for origins.” Prices for DDGS at Kansas City or Elwood, Illinois railyards are down $10-15/MT while prices for DDGS delivered to California, the PNW, or Lethbridge, Alberta average $7/MT higher. Notably, while offers are readily available for Lethbridge for August and September, there are fewer offers for October.
Barge CIF NOLA DDGS values are up $2/MT for spot shipment and steady/$1 higher for deferred positions. FOB NOLA values are steady for August and September but down $13/MT for October. Offers for 40-foot containers to Southeast Asia are up $4 this week at $398/MT.
