Market Perspectives – June 21, 2018

Distiller’s Dried Grains with Solubles (DDGS)

DDGS Comments: DDGS prices remain competitive with soymeal values this week, with merchandisers lowering offers to move more product. FOB ethanol plant DDGS prices are lower, increasing the ethanol co-product’s competitiveness versus soymeal. Presently, DDGS hold a $1.45/protein-unit advantage over soymeal, gaining nearly $0.60/protein-unit cost advantage since last week.

On the export market, Barge CIF NOLA and FOB Gulf DDGS values are lower in sympathy with falling corn and soymeal values. Values for containerized product to Southeast Asia are lower as well. Still, FOB Gulf DDGS prices at 136% of FOB Gulf corn values, with the above-average figure signaling solid demand for DDGS. Moving forward, merchandisers believe there should be a correction period that entails price increases.