Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: FOB ethanol plant DDGS prices continue to rally on strong domestic demand, rising $7.50/MT this week. The rally in the soymeal market has slowed and Kansas City soymeal prices are up $2.00/MT. DDGS are priced at 116 percent of cash corn values, up from last week and above the five-year average ratio of 109 percent. The DDGS/soymeal price ratio is 0.44, above last week’s value and the three-year average of 0.42.
While domestic DDGS prices are firming, export offers are mixed. Barge CIF NOLA DDGS are down $3/MT for spot shipment and FOB Gulf offers are down an equal amount. Offers for DDGS in 40-foot containers destined for Southeast Asia are up $1-2/MT as international demand is starting to pick up for fall positions.
