Distiller’s Dried Grains with Solubles
DDGS Comments: Cash corn stands at $3.20/bushel this week, while FOB ethanol plant DDGS values increased slightly from last week to $144.30/MT. The DDGS/cash corn value is 9 percent higher than its two-year average.
Recently released data from the U.S. Census Bureau and USDA/FAS GATS show that U.S. DDGS exports in August 2018 totaled 1,155,961 MT, an increase of approximately 4 percent from July volumes. The August export volume was 52 percent higher than the volume exported in the same month one year ago. Top destinations included Mexico, South Korea, Vietnam, Thailand and Indonesia.
Merchandisers report that, following a brisk period of container buying, the market is relatively quiet as international buyers assess their near-term needs. This pause should allow the U.S. river system to clear out and more DDGS to move down to the Gulf for export.
DDGS prices are mixed this week. Prices at the U.S. Gulf fell $1/MT to $183/MT. On average, prices for 40-foot containers to Southeast Asia were up $4/MT for October delivery.