Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices continue to decline with increased ethanol production and end users having covered near-term needs. Prices for DDGS FOB ethanol plants are sharply lower at $199/MT this week. The DDGS/cash corn ratio is 0.82 this week, down from the prior week and below the three-year average of 1.13. The DDGS/Kansas City soymeal ratio below the prior week at 0.54 and above the three-year average of 0.46.
On the international market, DDGS values are also lower with buyers assessing the freight market rally and the recent decline in CBOT futures. Barge CIF NOLA offers are down $30/MT this week while FOB Gulf offers are $28-30/MT weaker, averaging $246/MT for July shipment. Prices for 40-foot containers to Southeast Asia are mixed, with offers for product into Myanmar and Thailand $3-4/MT higher while prices into Malaysia and Vietnam are down $4/MT. On average, containers to Southeast Asia are priced at $332/MT this week, down $3/MT from last week’s trade.
