Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Cash corn prices are steady/slightly lower across the U.S. this week, but basis levels continue to firm, rising to 4 cents under May futures. This week in 2019, U.S. corn basis averaged 67 cents under May futures. Prices for DDGS FOB ethanol plants steady this week, as are Kansas City soymeal values after their recent $18/MT rally. DDGS are priced at 108 percent of cash corn values, up from last week and above the three-year average. The DDGS/soymeal price ratio is 0.47, equal with the prior week and above the three-year average of 0.42.
DDGS merchandisers report that ethanol plants are slowing production for spring maintenance, which is keeping the nearby market tight. Additional export and domestic demand is supporting values and prices are expected to remain firm through Q2 2020. FOB Gulf values are up $4/MT for spot delivery and up $2-3 /MT for April/May shipments. U.S. rail rates are up $4-7/MT on firming demand as well, while 40-foot containers to Southeast Asa are up $5/MT for March shipment and are steady for April/May. Offers for containers CNF Southeast Asia are averaging $263/MT for March shipment and $261/MT for April.
