Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are another $10/MT lower this week as physical markets remain thinly traded and futures prices pulled back sharply this week. The break in new crop corn futures as well as recent declines in soymeal futures has given way to lower pricing ideas. The DDGS/Kansas City soymeal ratio at 0.54, equal with last week’s ratio and above the three-year average of 0.48. The DDGS/cash corn ratio is at 0.86 this week, up from 0.86 last week and below the three-year average of 1.06.
The volatility in outside grain and feed markets has impacted the DDGS market and indications are wide-ranging. Barge CIF NOLA offers are $4-6/MT higher, on average, with barge freight driving much of the increase. FOB NOLA offers are up $4-5/MT for spot shipment and up $2-3/MT for deferred positions. Prices for 40-foot containers to Southeast Asia are widely mixed this week with lower offers for product into the Philippines, Indonesia, and Malaysia (averaging $9/MT declines) but higher rates for product to Vietnam, Bangladesh, and Myanmar. The average price for containerized DDGS to Southeast Asia hit $414/MT this week.