DDGS prices have been dropping as warmer weather affects US demand, and Chinese demand has slowed in anticipation of an impending anti-dumping tariff.&nbsp; Even though nothing has been announced in the Chinese dumping case, DDGS exports to China have dropped from more than 1 million metric tons (mmt) in August to less than 300,000 tons in January.&nbsp; Chinese importers still are wary of having shipments that are not yet through customs if tariffs are announced.&nbsp; Other Asian companies are waiting until their inbound pipeline is near empty in the hopes that there is distressed product to be purchased.
Back in North America, demand from Mexico continues to be robust, but domestic U.S. demand is falling as prices of other protein meals pressure the DDGS market.&nbsp; In general, distillers grains are below 100 percent the value of local corn, which generally creates some demand. Milder spring weather has tempered buying, and feeding margins are too tight for buyers to want to buy ahead, so demand has stayed hand to mouth. Barge prices have dropped as the river opens and tons that typically &nbsp;would have headed to the Chinese container markets move that direction.&nbsp; 
Looking ahead, there will be a decent amount of spring ethanol plant maintenance in April, which should help to stabilize falling prices.&nbsp; U.S. planting conditions and South American currencies and crops quality also will influence futures and cash prices.&nbsp; With so many influencing factors outside of the United States, it looks to be a volatile spring.
<table>
<tbody>
<tr>
<td width="100">Location</td>
<td>May 2016</td>
<td>April 2016</td>
<td>May 2015</td>
</tr>
<tr>
<td>Minnesota</td>
<td>115</td>
<td>120</td>
<td>180</td>
</tr>
<tr>
<td>Chicago</td>
<td>135</td>
<td>140</td>
<td>210</td>
</tr>
<tr>
<td>Buffalo, N.Y.</td>
<td>140</td>
<td>145</td>
<td>205</td>
</tr>
<tr>
<td>Central Calif.</td>
<td>179</td>
<td>187</td>
<td>246</td>
</tr>
<tr>
<td>Central Fla.</td>
<td>155</td>
<td>162</td>
<td>226</td>
</tr>
</tbody>
</table>
&nbsp;

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DDGS prices have been dropping as warmer weather affects US demand, and Chinese demand has slowed in anticipation of an impending anti-dumping tariff.

Commodities: Spring DDGS market likely to be volatile

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