Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: DDGS values are steady/mixed this week with regional demand factors and nervousness about the now-averted railroad strike influencing values. End user demand is picking up, especially from the livestock sector as cooler temperatures mean greater feed consumption by animals. Additionally, the industry is heading into its seasonal plant maintenance season, which will crimp output and offer support to prices. The DDGS/Kansas City soymeal ratio is steady at 0.51 this week and above the three -year average of 0.49. The DDGS/cash corn price was down from last week at 0.96 and below the three-year average of 1.06.
Barge markets are relaxing after their recent run-up and offers for DDGS Barge CIF NOLA are down $2-3/MT so far this week. FOB Gulf DDGS, however, are up $2 for spot positions and steady/down $1 for deferred positions. U.S. rail rates are sharply higher this week due to concerns about the strike, but those values should retreat soon. Offers for 40-foot containers are steady/up$4/M this week with the increase in ocean freight rates offering support. Offers for containerized DDGS to Southeast Asia averaged $408/MT through Thursday’s trade.
