Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are steady/$5 lower this week as ethanol run rates continue their seasonal increase. Over the past two weeks, data from the EIA shows ethanol– and therefore DDGS – production has increased 9 percent from its maintenance-season low. Also pressuring DDGS values is the navigation issues on the Mississippi River, which has pushed more product into the interior market. The DDGS/Kansas City soymeal ratio fell to 0.56 this week, above the three-year average of 0.49, while the DDGS/cash corn ratio slipped back to 1.02 this week, below the three-year average of 1.06.
On the export market, Barge CIF NOLA prices are sharply lower as the logistics hurdles ease. October barge rates fell $12/MT this week while November and December rates pulled back $2-3/MT. FOB NOLA offers are steady/$3 higher this week at $350/MT for spot shipment. Offers for 40-foot containers to Asia are mixed with some routes quoted at steady with last week while others are up $5-11/MT. The average offer for containerized DDGS to Southeast Aisa hit $390/MT this week.