Market Perspectives – May 2, 2019

Distiller’s Dried Grains with Solubles (DDGS)

DDGS Comments: Cash corn values were $3.42/bushel this week while FOB ethanol plant DDGS are down from last week to $135.17/MT. The DDGS/cash corn value is 100 percent, below the two-year average of 107 percent.

DDGS indications saw another week of downward correction. In the U.S., improved river/transportation logistics have helped drive down values. With last-half May delivery becoming hard to realize, the nearby month moves to June and FOB vessel U.S. Gulf indications are at $191/MT for that month. Further, U.S. rail rates saw a significant downward correction from last week to this week.

Merchandisers report steady business from international buyers, including in Vietnam and Indonesia; 40-foot containers to Southeast Asian destinations are down $5/MT, on average.