US DDGS values approach multiyear highs as physical trade stalls

The US dried distillers grains with solubles market rallied sharply in late August alongside rising corn futures, pushing the CIF New Orleans and Chicago Truck prices toward multiyear highs.

Despite the increase, physical movement and fresh buying interest have remained limited, with elevated values and futures volatility pushing domestic and international buyers to the sidelines.

Platts, part of S&P Global Energy, assessed CIF New Orleans at $237/short ton Sept. 2, its highest level since March 2024, when values reached $240/st. The latest rally began Aug. 24-25, with CIF prices rising about $30/st after the week ended Aug. 21. Chicago truck prices climbed to $196/st Aug. 25 and reached $202/st Sept. 2, the highest since March 2024, when they were at $222/st. UP California rose from $235/st Aug. 24 to $250/st Aug. 25 and reached $260/st Aug. 28, surpassing the $257/st level seen in April 2026.

Market participants consistently tied the move to corn prices. "We had a huge rally in all markets," one broker said as the rally accelerated. A trader later characterized it as "definitely a board-driven rally," adding that fundamentally "there's still a lot of product to move."

The rapid appreciation has increasingly discouraged physical participation. "Many feel sidelined and watching this corn go up even more," a second broker said.

A third broker described the market as "heated" following the quick run-up, while a buyer said Central Northeast DDGS prices were "constantly firming up every day." By early September, brokers were reporting little to no trade, with the first one saying they were "not even trying in CIF" amid wide markets and heavy futures volatility.

According to the first trader, international demand has shown some signs of interest, particularly from Turkey and Europe, amid uncertainty in the Black Sea, but it has yet to translate into significant DDGS movement. Asian buyers have largely stepped back, waiting for lower or more stable values, with Korean buyers in particular reported to be on the sidelines, the trader added.

A second trader reported international inquiries for October and November vessel business during the week ended Sept. 4, but said, "It's strange to me; I don't know why there are no trades," attributing the disconnect to market uncertainty.

The lack of participation has become increasingly notable as producers still have product to place. "I think this market feels a bit toppy," a third trader said. "Producers asking for spot, but we don't have enough participation to make the move." Meanwhile, the first trader similarly cautioned that despite the futures-driven rally, "there's still a lot of product to move."

September maintenance could provide the next test for the market. Production has remained high heading into the period, with maintenance typically beginning around mid-September, according to the first trader. Reduced ethanol plant operations could tighten DDGS availability, while increased wet-feed demand during maintenance could further limit dry supply. At the same time, end users have remained lightly covered and could eventually be forced back into the market.

For now, high values appear to be restricting demand. The second broker warned during the rally, "We really can't go much higher," without DDGS risking displacement from feed rations. Whether values hold near current highs may depend on which side needs to act first: buyers requiring coverage as maintenance tightens supply, or producers needing to move inventories into a market where participation remains scarce.

Platts assessed CIF New Orleans dried distillers grains with solubles barges for the September shipment period at $237/st Sept. 4, the Chicago DDGS truck market for the September delivery period was assessed at $202/st, and the South California rail market for the September delivery period was assessed at $260/st.