- DDGS markets were mixed-to-firm in Q1’26 as freight, ethanol output, and feed demand shaped regional movement.
- Feedstock pressure came from corn and ethanol production, with U.S. corn use for alcohol and other uses rising 10.0% from February and 4.0% year-on-year in March.
- Downstream demand remained supported by livestock and poultry feed, with Asia showing stronger import interest from Vietnam and China.
In North America, DDGS prices showed a mixed-to-firm trend during Q1’26, with the strongest support emerging in March as oil and freight costs rose after the Iran war and Strait of Hormuz disruption. The market was quiet earlier in the quarter, but higher shipping costs, shutdown-season uncertainty, and stronger energy values shifted sentiment upward. U.S. DDGS output remained healthy, with March production reaching 1.79 million tons, up 10.0% from February but down 1.0% from March 2025, showing active ethanol-linked supply despite annual softness. Corn use also supported availability, as total corn consumed for alcohol and other uses reached 523 million bushels in March, up 10.0% from February and 4.0% year-on-year. Feed demand from livestock producers remained steady, while exporters monitored Asia-bound flows amid freight volatility. Hormuz-related disruptions did not directly affect DDGS production but raised fuel, ocean freight, and shipment-risk costs, supporting firmer market sentiment near the end of the quarter.
