Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS prices are $20/MT higher this week as the commodity bull market continues. Merchandisers note DDGS sellers are “losing on a relative value to corn” but ethanol margins are still structured to favor additional DDGS production. Domestic buyers have reportedly bought little of their forward needs and are now covering amid the price rally. The DDGS/cash corn ratio is 0.86, down from the prior week and below the three-year average of 1.10. The DDGS/Kansas City soymeal ratio is higher than last week at 0.53 and above the three-year average of 0.42.
On the export front, DDGS prices are mostly higher. Barge CIF NOLA offers are up $12/MT for June positions while FOB NOLA offers are down $3-6/MT this week at $322/MT for June shipment and $324/MT for July. U.S. rail rates are steady while 40-foot containers to Southeast Asia are up $30/MT at $379/MT.
