<p>As Chinese New Year celebration comes to an end, the DDGS market is still waiting to see what China is going to do in the container markets, and if it will be in addition to, or in lieu of, what has already traded in January and February in the bulk markets.&nbsp; With as many as 35 boats having been reported as traded for the upcoming March through September time frame, intuitively the container market seems as though it should feel some pressure.&nbsp;</p>
<p>Logistics are playing into the equation as well.&nbsp; For most of February, it felt like the west coast container ports were teetering on the verge of a strike, with slowdowns turning three day unloads into 10 to 12 days. &nbsp;However, over the weekend of Feb. 21, there was an agreement signed, so now they can begin to work into cutting the backlog, which is substantial.&nbsp; Empty container supplies should now be more readily available, and hopefully that translates into more business.&nbsp; The per-ton price spread between bulk and container freight had favored containers in the past, but has now switched pretty dramatically to favoring bulk.</p>
<p>Domestically, rail movement have improved, so there are a lot less fire sales in the local truck markets, since plants now have a better supply of cars to move the product further afar.&nbsp; With the robustness of the bulk boat market mentioned above, there is a lot more DDGS moving via rail to river points that are not frozen.&nbsp; Cash delivered prices are at 120 to 130 percent &nbsp;or more the price of corn, which continues to eat into domestic demand.</p>
<p>Looking ahead, eyes will continue to be on what happens in the Chinese market.&nbsp; The current prices that are being paid thee are not easily replicated in most other countries in the word.</p>
<table border="0" cellspacing="0" cellpadding="0" width="507">
<colgroup><col width="95"></col> <col width="106"></col> <col width="119"></col> <col width="123"></col> <col width="64"></col> </colgroup> 
<tbody>
<tr height="20">
<td colspan="2" width="201" height="20">DDGS Prices ($/ton)</td>
<td width="119">&nbsp;</td>
<td width="123">&nbsp;</td>
<td width="64">&nbsp;</td>
</tr>
<tr height="20">
<td height="20">LOCATION</td>
<td class="xl65" align="right">April 2015</td>
<td class="xl65" align="right">March 2015</td>
<td class="xl65" align="right">April 2014</td>
<td>&nbsp;</td>
</tr>
<tr height="20">
<td height="20">Minnesota</td>
<td class="xl66" align="right">160</td>
<td class="xl66" align="right">165</td>
<td align="right">180</td>
<td>&nbsp;</td>
</tr>
<tr height="20">
<td height="20">Chicago</td>
<td class="xl66" align="right">192</td>
<td class="xl66" align="right">200</td>
<td class="xl66" align="right">225</td>
<td>&nbsp;</td>
</tr>
<tr height="20">
<td height="20">Buffalo, N.Y.</td>
<td class="xl66" align="right">195</td>
<td class="xl66" align="right">200</td>
<td class="xl66" align="right">215</td>
<td>&nbsp;</td>
</tr>
<tr height="20">
<td height="20">Central Calif.</td>
<td class="xl66" align="right">246</td>
<td class="xl66" align="right">254</td>
<td class="xl66" align="right">280</td>
<td>&nbsp;</td>
</tr>
<tr height="20">
<td height="20">Central Fla.</td>
<td class="xl66" align="right">228</td>
<td class="xl66" align="right">232</td>
<td class="xl66" align="right">262</td>
<td>&nbsp;</td>
</tr>
</tbody>
</table>

2015/02/DDGS-pile_14248151641056_largethumb.jpg

2015/02/DDGS-pile_14248151641056_thumb.jpg

2015/02/DDGS-pile_14248151641056.jpg

The DDGS market is still waiting to see what China is going to do in the container markets.  As many as 35 boats having been reported as traded for the upcoming March through September time frame.

All eyes on China for DDGS market impacts

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