Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are steady/down $3/MT this week following a volatile week in broader commodity markets. End user demand remains solid and the break in DDGS and soymeal prices has allowed buyers to step up. The DDGS/cash corn ratio is 0.98 this week, up from the prior week and below the three-year average of 1.10. The DDGS/Kansas City soymeal ratio is up from the prior week at 0.59 and is above the three-year average of 0.42.
On the export front, DDGS prices are lower this week. Barge CIF NOLA prices are sharply lower following last Friday’s resumption of river navigation along the U.S. Mississippi River. FOB Gulf offers average $305/MT for June shipment this week, down from $324/MT last week. Prices for 40-foot containers to Southeast Asia are lower this week but have held up better than other markets. Spot offers for containers are down $9/MT this week at $365/MT while summer positions are down $5-6/MT.