Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Cash corn is up from last week to $3.19/bushel, while FOB ethanol plant DDGS values fell slightly to $144.30/MT from last week. The DDGS/cash corn value is 9 percent higher than its two-year average.
Changes in ethanol production have contributed to a slow tightening of the DDGS market. International demand is expected to eventually push DDGS values upwards, following corn futures. Meanwhile, robust domestic demand is keeping a lot of product in-country.
DDGS prices are mixed this week. On average, prices for 40-foot containers to Southeast Asia fell $1/MT for October delivery; containers to Vietnam fell $3/MT. DDGS at the Gulf fell $4/MT from last week to $186/MT.