Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are higher again this week on continued strength in the western rail market. Rail values are up $4/MT for November but are slightly weaker for December and January shipment. FOB ethanol plant DDGS prices are $5/MT higher this week and the DDGS/cash corn ratio was steady from last week at 1.29 and above the three-year average of 1.03. The DDGS/KC soymeal ratio fell to 0.43 this week and remains below the three-year average of 0.51.
Higher FOB plant prices and the strong western rail market are further supporting values along the river system and for exported product. Barge CIF NOLA offers are up $13/MT for November this week and are up $11-12 for December – January. FOB NOLA offers are $7/MT higher for November through early 2024 positions. Prices for containerized DDGS to Southeast Asia advanced $13/MT this week to average $329 for November shipment.
U.S. DDGS exports totaled 1.03 MMT in September, according to the U.S. Census Bureau, and were up 8.7 percent from August. Mexico was again the top importer of the feedstuff and purchased 201,607 MT, a volume 7.5 percent above the same month in 2022. YTD DDGS exports total 8.089 MMT from January through September, down 6 percent from the same period one year ago.
