As the corn crop progresses, and the futures prices slip with improving conditions, DDGS values have been sliding as well.   Buyers have not been aggressive at all to get any forward coverage and are seeing consistently lower offers which will keep them in a “wait and see mode,” until things turn.  DDGS prices are now hovering close to the value of corn, after having seen prices as high as 120 percent of it.

Domestically, most feeders have kept profitable using DDGS as part of the ration.   Soymeal prices spiked in June and July, and the protein component of distillers grain became more relevantwhich increased its value versus corn both in the US, and abroad.   In the export markets this year, with Chinese buying only about 20percent of what it was during the biggest months in 2015, most other countries have stepped up their buying, especially places like South Korea, Turkey, Mexico, Vietnam and Thailand.

Looking ahead, traders still expect a decision about the Chinese anti-dumping to affect the DDGS market direction, especially if it provides some resolution or pathway to define the governmental costs (tariffs, if any) of selling DDGS there.   But until then, the crop conditions and futures gyrations will be affecting it lot more.

             Sep 2016   Aug 2016    Sept 2015

Minn.     120              135         140

Chicago  155              165         175

Buffalo  145               165         170

CA        180              190         200

Florida  160               168        195