Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are higher this week amid steady ethanol grind rates and an uptick in DDGS demand. The corn market’s late-week rally helped offset initial weakness in soymeal futures and support DDGS values as well. Low draft levels on the Mississippi River, restrictions on barge loadings, and rising barge freight rates are increasing prices for product heading for the Gulf.
The DDGS/cash corn ratio is steady with the prior week at 1.29 and remains above the three-year average of 1.02. The DDGS/soymeal ratio rose from the prior week and hit 0.52, which is now above the three-year average of 0.50.
Rates for DDGS delivered by rail to key U.S. locations are down $3-5/MT this week and extended last week’s weakness. Barge CIF NOLA DDGS offers are $2-3/MT higher this week at $258/MT and are while FOB Gulf offers for October are up $3/MT week while November and December positions are up $1-2/MT. Offers for 40-foot containers to Southeast Asia are $3-5/MT lower this week at $297/MT for spot positions.
