Distiller’s Dried Grains with Solubles (DDGS)
DDGS Comments: Another DDGS values are $2-3/MT lower this week FOB ethanol plants after five straight weeks of gains. Weaker soymeal prices and buyers having filled near-term needs were cited as reasons for the week’s declines. The weakness in soymeal values pushed the DDGS/Kansas City soymeal ratio up from last week to 0.50 and above the three-year average of 0.49. The DDGS/cash corn ratio is at 0.95 this week and is below its three-year average (1.06).
Tight logistics and increased export demand continue to push export DDGS offers higher. Barge CIF NOLA DDGS values are $2/MT higher for September positions this week while FOB NOLA offers are up $2-4/MT to $328 for spot positions. The DDGS container market is higher this week amid an uptick in ocean freight rates. Offers for 40-foot containers to Southeast Asia are up $4/MT on average this week at $408 for spot shipment.