Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Ethanol plants are in the middle of the spring maintenance season, which is slowing run rates and curbing DDGS production. Consequently, DDGS prices are higher this week with FOB plant values up $11/MT from last week. The Kansas City soymeal/DDGS ratio increased to 0.54 this week and is above the three-year average of 0.47. The DDGS/cash corn ratio is also moving higher and is at 1.11 this week, up from 1.06 last week and above three-year average of 1.06.
Merchandisers indicate that offers for DDGS delivered to Lethbridge, Alberta are sparse or unavailable this week due to the possibility of a strike from CP railroad employees.
Exporters note that most of the Mississippi River system will be open in the next few weeks after the mid-Mississippi River region was officially opened earlier this week. That is putting pressure on barge values, which are down $11/MT for April and down $18-25/MT for May/June positions. FOB Gulf offers are reflecting the reduced transportation costs and are down $5/MT for spot positions this week and posted a $14/MT decline for May. U.S. rail rates, however, are higher this week as fuel surcharges continue to support values.
Containerized DDGS exports to southeast Asia are up $5/MT this week amid the general strength in DDGS values and ocean freight rates. Offers average $456/MT for Q2 shipment.
