Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are $5-7 higher this week due to strong feed demand in the Midwest and continued adjustment to September’s lower production. Barge rates should be easing as recent rains have enabled a slight increase in the allowable draft for vessels.
The DDGS/Kansas City soymeal ratio has DDGS priced at about half the cost of soymeal. Meanwhile, the DDGS/cash corn ratio edged slightly higher this week to 102 percent, still below the three-year average of 1.06.
On the export market, Barge CIF NOLA prices are $11 higher for November shipment, erasing all of last week’s declines as barge rates rally again. Offers for DDGS on barges for December and January are up $7 and $4/MT, respectively. FOB NOLA offers are up $9 for November at $345/MT for 35 percent pro-fat and near $335-330/MT for 34 percent pro-fat. Offers for 40-foot containers to Asia are up $10-15 at $407/MT this week.
