Market Perspectives – March 4, 2021

Distiller’s Dried Grains with Solubles (DDGS)

DDGS Comments: U.S. DDGS prices are slightly lower this week as the supply pipeline is refilled following the sharp decline in production two weeks ago. The DDGS/cash corn ratio is higher this week at 122 percent and above the three-year average of 110 percent. The DDGS/Kansas City soymeal ratio is up to 0.54, up from the prior week and above the three-year average of 0.43.

Improving river logistics are helping move CIF NOLA rates lower, with spot offers down $6/MT and April/May down $16/MT at $288/MT. FOB NOLA offers are down $6/MT for March positions while Q2 offers are sharply lower at $296-297. Declining soymeal offers in the U.S. and Argentina have pressured DDGS values, but export interest remains strong. Prices for 40-foot containers to Southeast Asia are down $5-10/MT this week and are averaging $348/MT.