Soymeal prices keep DDGS, other protein prices firm
October 1, 2003
BY Sean Broderick, Commodity Specialists Company (CSC
Dried distillers grains prices have been very strong lately, with demand coming from dairy, hogs, and poultry. Soymeal futures prices in the low 200s are keeping the prices of all proteins firm and are affecting DDGS in the nearby and deferred markets. Offers for October shipment cars are hard to come by, and the buyers have been bidding up prices for Nov. '03/Sept. '04 cars. Export demand is still extremely strong and looks to continue through the winter. European buyers, who have been buying mainly corn gluten feed, have been turning to "golden" distillers grains for its quality and relative value. South American and Caribbean business has been brisk, and lower barge freights for the Nov./March time period is helping to create new export sales. Whole cottonseed prices in California are nearly $200 delivered to the dairy for new crop, which should help to keep distillers in high demand.
Going ahead, the biggest factor will be what direction the CBOT soy complex takes. If soymeal and whole cottonseed stay expensive, distillers grains will remain at these levels. Planting and crop conditions in South America should guide prices, and natural gas prices will determine the wet/dry mix determinations at the plants that have that flexibility. EP
Going ahead, the biggest factor will be what direction the CBOT soy complex takes. If soymeal and whole cottonseed stay expensive, distillers grains will remain at these levels. Planting and crop conditions in South America should guide prices, and natural gas prices will determine the wet/dry mix determinations at the plants that have that flexibility. EP
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