Distiller’s Dried Grain with Solubles (DDGS)
DDGS Comments: Falling soymeal values and strong ethanol production continue pressuring DDGS prices. Kansas City soybean meal values dropped $6/MT this week while FOB ethanol plant DDGS values retreated to $137/MT. The DDGS/cash corn value reached 107 percent this week, nearly equal to its two-year average. DDGS retain a $1.81/protein-unit cost advantage over soybean meal, with the ethanol co-product gaining a 30-cent advantage this week.
A modest move higher in FOB U.S. Gulf corn values is helping stabilize FOB Gulf DDGS prices, with quotes for the latter mixed today but not far off last week’s values. Internationally, merchandisers are reporting Asian buyers were waiting for clarity and a market floor early this week but have now “settled” with current prices. Prices for containerized shipments to Southeast Asia are steady with product destined for Bangladesh one of the few routes showing a decrease.