Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: An increase in ethanol output and weaker corn and soymeal futures pressured DDGS prices this week and FOB ethanol plant values fell $10/MT. The holiday-shortened trading week has also impacted market activity as most end users secured near-term needs before the long weekend. The DDGS/Kansas City soymeal ratio at 0.61, down from last week’s ratio of 0.60 and above the three-year average of 0.48. The DDGS/cash corn ratio is at 1.00 this week, steady with last week and below the three-year average of 1.06.
On the export market, Barge rates are higher this week amid an increase in downriver traffic and rising fuel costs. DDGS Barge CIF NOLA are up $18/MT for June-August shipment while FOB Gulf offers are steady for June and up $2-4/MT for July and August. Offers for 40-foot containers to Southeast Asia are down $3-10/MT depending on the destination as ocean freight rates continue to ease. The average offer for containerized DDGS to Southeast Asia hit $400/MT this week.