Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS prices turned lower again this week and gave back most of last week’s $10/MT gains. Weaker CBOT futures and an increase in ethanol run rates/DDGS output pressured prices heading into the U.S. three-day weekend. Even so, merchandisers report that “buyers are closely watching the board” and are extending forward coverage as opportunities arise. The DDGS/Kansas City soymeal ratio at 0.61, down from last week’s ratio and above the three-year average of 0.48. The DDGS/cash corn ratio is at 1.00 this week, down from 1.06 last week and below the three-year average of 1.06.
On the export market, brokers and exporters report that Barge CIF NOLA values are down $10/MT for June and down $12/MT for July and August while FOB Gulf offers are down $13/MT. Container offers are down $16-20/MT this week due to lower internal prices and a modest break in ocean freight rates. The average offer for 40-foot containers to Southeast Asia is $409/MT for June-August shipment.