Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are down $3.25/MT this week as ethanol production margins rebound and run rates increase. Brokers report expectations of rising gasoline demand should continue to support rising ethanol and DDGS production. DDGS demand is expected to stay steady or even increase following recent export market quietness, but higher production may start to cap DDGS price rallies. The DDGS/cash corn ratio is steady this week at 1.20 and above the three-year average of 1.10. The DDGS/Kansas City soymeal ratio is up to 0.55, up from the prior week and above the three-year average of 0.43.
Exporters report a relatively quiet market this week as buyers adjust to new and rising freight prices. Barge CIF NOLA values are down $10-12/MT this week as river logistics normalize while FOB Gulf offers are down $6-8/MT. Offers for 40-foot containers to Southeast Asia are spotty but generally firmer this week, with the average rate moving higher to $360/MT.
