Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are $6/MT lower this week reflecting the additional supply from ethanol output hitting a six-week high last week. The return of the summer driving season should keep ethanol output and DDGS supplies better elevated. While DDGS prices are softening, soymeal prices on the board have been rising. The DDGS/Kansas City soymeal ratio is at 0.51 this week, down from last week (0.54) and nearly equal to the three-year average of 0.50. The DDGS/cash corn ratio is 0.98 – lower than last week (1.0) and below the 3-year average of 1.03. DTN’s cost of protein calculation now gives DDGS the advantage of a 5 percent discount to soymeal.
Barge CIF NOLA values dropped again this week with offers for July falling $8/MT while FOB NOLA offers are down $6 for July. U.S. rail rates are down significantly this week for product deliver to the PNW and California where a port strike is occurring. Offers for 40-foot containers to Southeast Asia are down an average of $21. The smallest reductions have been for the KC railyard and Elwood railyards.
