Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are $5/MT lower this week as the start of the summer vacation season has reportedly left the market quiet with diminished liquidity. Buyers have filled near-term needs and are slowly booking forward supplies as the market offers advantageous prices. The DDGS/Kansas City soymeal ratio at 0.58, down from last week’s ratio of 0.61 and above the three-year average of 0.48. The DDGS/cash corn ratio is at 0.93 this week, down from last week and below the three-year average of 1.06.
On the export market, Barge rates are steady/lower this week following last week’s rally. DDGS Barge CIF NOLA are down $1/MT for June-August shipment while FOB Gulf offers are up $4-5/MT for June through August. Offers for 40-foot containers to Southeast Asia are down $2-3/MT depending on the destination as ocean freight rates posted another week of slightly lower values. The average offer for containerized DDGS to Southeast Asia hit $399/MT this week.