Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are lower this week amid the recent pullbacks in corn and soymeal futures. Western rail demand has cooled a bit with end-users having booked near-term needs. Ethanol run rates have fallen over the past two weeks, however, which will start to tighten spot supplies and support values.
FOB ethanol plant DDGS prices are $2/MT lower this week; the DDGS/cash corn ratio is firmer at 1.35 and above the three-year average of 1.03. The DDGS/KC soymeal ratio rose to 0.42 this week and remains below the three-year average of 0.51.
Barge CIF NOLA offers are down $4/MT for December and down $6 for January and February this week as barge freight rates follow their seasonal declines. FOB NOLA offers are $9-10/MT lower for December and January shipment with a wide range of offers received for this week’s survey. Prices for containerized DDGS to Southeast Asia are down $2/MT this week at $329 for December/January shipment as higher ocean freight rates offset lower product values on the river system.
