Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices are continuing last week’s trend and are down $9.25/MT FOB ethanol plant through Thursday’s market close. Quiet end-user demand following the aggressive purchase pace earlier this year, combined with weaker soymeal values, has pressured the market. Additionally, supplies are increasing as plants exit the seasonal spring maintenance shutdown season.
The DDGS/Kansas City soymeal ratio at 0.67, up from last week’s 0.61 and above the three-year average of 0.48. The DDGS/cash corn ratio is at 1.05 this week, up from 0.97 last week and below the three-year average of 1.06.
On the export market, brokers and exporters report that Barge CIF NOLA values are down $15/MT for June through August shipments in a continuation of last week’s weaker trend. FOB Gulf offers are down $9-10/MT as that market is finding better support and steady buyer inquiries. Container offers are down $20/MT this week as lower domestic prices offset slight gains in ocean freight. The average offer for 40-foot containers to Southeast Asia is $422/MT for June-August shipment.