Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are starting to pull back from recent highs as the spring ethanol plant maintenance season ends and DDGS output pushes higher. FOB ethanol plant values are down $5/MT so far this week amid the seasonal supply increase and the recent pullback in soymeal futures is also helping move values lower. The Kansas City soymeal/DDGS ratio increased to 0.57 this week and is above the three-year average of 0.47. The DDGS/cash corn ratio is at 1.13 this week, up from 1.09 last week and above the three-year average of 1.06.
U.S. barge freight rates are heading lower after their recent spike, and this is pushing Barge CIF NOLA DDGS values lower. Prices for spot barge CIF NOLA are down $15-16/MT for April and May and down $10-13/MT for May/June. FOB NOLA values are similarly lower with April/May offers down $18-20/MT and averaging $420/MT for spot shipment.
The market for containerized DDGS into southeast Asia is quiet this week after last week’s activity. Brokers indicate offers are sparse but $5-7/MT higher as ocean freight values remain firm.