Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Cash corn stands at $3.21/bushel this week, while FOB ethanol plant DDGS values fell slightly from last week to $143.58/MT. The DDGS/cash corn value is 8 percent higher than its two-year average.
Changes in ethanol production continue to tighten the DDGS market. This week merchandisers reported a general pickup in demand from Asia, with sales reported to Southeast Asian markets Indonesia and Thailand. Buyers have been generally quiet given large corn and soybean harvests in the U.S., among other factors, but prices have stabilized somewhat helped by seasonally higher demand in the domestic market.
DDGS prices are mixed this week. On average, prices for 40-foot containers to Southeast Asia were up $3/MT for October delivery, with containers to Vietnam seeing the largest increase (+$6/MT). Container rates to Japan were steady. DDGS at the Gulf fell $1/MT from last week to $185/MT while indications for rail-delivered PNW fell $3/MT.