Market Perspectives – May 19, 2022

Distiller’s Dried Grains with Solubles (DDGS)

DDGS Comments: DDGS prices broke the past few week’s trend lower and traded $10/MT higher so far this week. The rally in soymeal futures plus renewed international buying interest helped support values. The DDGS/Kansas City soymeal ratio at 0.67, equal with last week’s ratio and above the three-year average of 0.48. The DDGS/cash corn ratio is at 1.06 this week, up from 1.05 last week and equal to the three-year average of 1.06.

On the export market, brokers and exporters report that Barge CIF NOLA values are up $11/MT for June through August as buyers stepped up following the recent declines. FOB Gulf offers are up $13/MT in tandem with strength in the barge market and fresh export interest. Container offers are up $2-5/MT this week on gains in ocean freight. The average offer for 40-foot containers to Southeast Asia is $425/MT for June-August shipment.