Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices rose another $20/MT this week as grain and feedstuff markets continue their respective rallies. The conflict in Ukraine continues to support grain values, which are near all-time highs, while buyers validate asking prices as few inexpensive feedstuff options remain. The Kansas City soymeal/DDGS ratio was steady at 0.52 this week and above the three-year average of 0.47. The DDGS/cash corn ratio is higher at 1.06 this week, up from 0.97 last week and equal to its three-year average.
Higher crude oil and energy values are once again pushing the delivered DDGS market higher. Energy costs are supporting interior truck values and railroad fuel surcharges and rail-delivered DDGS are up $20-34/MT from last week.
Barge CIF NOLA DDGS prices are up $60-65/MT this week and FOB Gulf offers are equally higher, averaging $411/MT for April. As was the case last week, there are a wide range of indications in the market and Thursday’s indications hold a premium to early week offers.
Containerized DDGS to Southeast Asia are still trading slowly amid large increases in DDGS prices and ocean freight values. Offers up $3/4MT this week, with the average Q2 price for 40-foot containers to Southeast Asia reaching $451/MT.
