Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: U.S. DDGS values are slightly lower this week as buyers have booked near-term needs and spot demand is easing. The rally in soymeal continues, however, and is expected to offer support to the DDGS market going forward. FOB ethanol plant DDGS are down $1-2/MT this week while Kansas City soymeal offers are up $11.50/MT. DDGS are valued at 120 percent of cash corn prices, down from last week and above the three-year average of 109 percent. The DDGS/soymeal ratio reached 0.43 this week, down slightly from the prior week and above the three-year average of 0.42.
DDGS brokers and merchandisers note that export demand remains firm. Traders say that “destination business” has been done this week and those trades are further supporting offers and replacement prices. Barge CIF NOLA values are up $9-14/MT this week while FOB Gulf prices have risen $9/MT for December and $13/MT for January and February 2021. Offers for 40-foot containers to Southeast Asia are up $13/MT this week, averaging $303/MT.