Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Cash corn prices are higher across the U.S. in-line with Monday’s move higher in corn futures. Prices for DDGS FOB ethanol plants are steady with Kansas City soymeal prices moving slightly ($1.21/MT) lower. DDGS are priced at 102 percent of cash corn values, up from last week and below the three-year average of 106 percent. The DDGS/soymeal price ratio is 0.44, steady with last week and slightly above the three-year average.
The DDGS export market is much the same as last week with FOB Gulf values declining slightly and 40-foot containers to Southeast Asia steady at $239/MT. The move higher in soybean meal futures has reportedly prompted some international buyers to take a more cautious approach. Still, with DDGS supplies expected to remain tighter through the fall, exporters are defending asking prices.
