Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are lower this week on light buying interest and larger production last week. Barge CIF NOLA prices fell as did FOB NOLA prices. Falling barge freight rates and relatively firmer Gulf values have increased netbacks for firms able to ship on the river, according to merchandisers.
With lower soybean meal prices this week, the difference in per-protein unit costs narrowed between DDGS and soybean meal. DDGS are now $1.34/protein-unit cheaper than soybean meal and are priced at 123 percent of cash corn values.
On the export market, merchandisers are reporting a slow tone to the market, with Savanah, Georgia and Chicago prices $5/MT lower. Low pork production margins in Vietnam are reportedly slowing DDGS purchases from that nation. Prices to Southeast Asia were $3/MT lower on average this week.