Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are $5/MT lower this week as weak soymeal markets and slow end-user demand are motivating sellers to become more aggressive. DDGS markets have seen little support so far from old crop corn futures’ 50+ cent rally over the past two weeks but emerging broad support in commodity markets could help values start to turn around.
The FOB ethanol plant DDGS/cash corn price ratio is lower this week at 1.03, down from 1.06 last week and below the three-year average of 1.06. The DDGS/Kansas City soymeal ratio of 0.55 is steady with the prior week but still above the five-year average of 0.50.
Barge CIF NOLA values dropped again this week with offers for June falling $10/MT to $261 while FOB NOLA offers are down $5 for June at $271/MT. U.S. rail rates are down $4/MT this week with offers for product delivered to the PNW, California, and Laredo, Texas steady/firmer while KC railyard and Elwood, Illinois railyard offers are down $8-12/MT. Offers for 40-foot containers to southeast Asia are down $11/MT this week at $349 amid steady/lower freight rates and increasingly competitive DDGS values.
