Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Robust export demand and increased buyer interest continue to support the DDGS market. Domestically, FOB ethanol plant prices fell $3/MT in sympathy with lower soybean meal prices (Kansas City soybean meal values fell $5/MT). DDGS are $1.39/protein-unit less expensive than soybean meal; widening their cost advantage from last week.
On the export side, Barge CIF NOLA values are higher while FOB NOLA values gained as well. Netbacks to merchandisers with river access have been higher than average in recent weeks, and the latest prices appear to be a reversion back to “normal.”
Prices for DDGS CIF Southeast Asia increased $5/MT as buyers expand their interest in covering forward needs. Prices for product destined for Indonesia gained $8/MT, while product for Japan and Taiwan increased $7/MT. Notably, there were not Asian destinations quoted where prices were lower than last week.