Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are lower this week with the decline in corn futures (before Thursday) and soymeal values weighing on the market. Higher ethanol run rates are also pushing more product to the domestic market, pushing prices lower despite continued strong demand. The DDGS/cash corn ratio is 0.99 this week, up from the prior week and below the three-year average of 1.14. The DDGS/Kansas City soymeal ratio is up from the prior week at 0.60 and above the three-year average of 0.45.
On the export front, DDGS prices are lower this week. Barge CIF NOLA prices are $25/MT lower while FOB Gulf offers are down $35/MT at $270/MT for spot shipment. Prices for 40-foot containers to Southeast Asia are steady as the container market remains exceptionally tight with offers averaging $370/MT this week.