Market Perspectives – May 13, 2021

Distiller’s Dried Grains with Solubles (DDGS)

DDGS Comments: U.S. DDGS prices are up $12/MT this week though industry contacts say markets have become volatile in recent days. The USDA’s WASDE report was largely supportive but news of the Mississippi River closure at Memphis, Tennessee added uncertainty to the market. The DDGS/cash corn ratio is 0.90, up from the prior week and below the three-year average of 1.10. The DDGS/Kansas City soymeal ratio is steady with the prior week at 0.52 and is above the three-year average of 0.42.

On the export front, DDGS prices are steady/slightly lower. FOB NOLA offers are steady/$2 lower at $322-325 for June-August shipment. U.S. rail rates are steady this week while 40-foot containers for export to Southeast Asia are down $4 at $374/MT.