Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS are $8-10/MT higher this week amid the widespread commodity rally. With corn and soymeal values climbing higher under fears about the impact of the Midwest drought, DDGS values have found equal support as end users move to cover needs ahead of further price spikes. The DDGS/cash corn ratio is up slightly from last week at 0.92 but still below the three-year average of 1.02 while the DDGS/Kansas City soymeal ratio is down from last week at 0.49 and below the three-year average or 0.50.
Barge CIF NOLA DDGS offers are $22/MT higher this week amid firming barge freight and rising offers for product destined for the river system. FOB NOLA offers are higher as well but lag the gains of the CIF market with July offers up $16/MT at $281 and August/September up $17 at $279-280/MT. U.S. rail rates are up $10/MT for the spot market and $12 for August/September while offers for 40-foot containers to Southeast Asia are up $6/MT at $330 for July shipment.
