August 16 th, DDGS/cash corn value stands at 106 percent of its two-year average. INSIDE THIS ISSUE. General Comments:

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1 INSIDE THIS ISSUE 1. General Comments 2. DDGS Reference Prices 3. Ocean Freight Markets 3. Latest Export Figures (Calendar and Crop Year) 6. FOB US Gulf DDGS & Corn Prices 7. Council News DDGS/cash corn value stands at 106 percent of its two-year average. August 16 th, General Comments: The release of USDA s WASDE report last week generated significant price movement and pushed cash corn values down; they ve regained some of those losses as of today s close. Meanwhile, FOB ethanol plant DDGS values are on their 5th straight week of gains, up nearly $5 from last Friday s close. Note that DDGS will see increased demand from domestic cattle feeders into the Q and Q period. The DDGS/cash corn value stands at 106 percent of its two-year average. DDGS at the Gulf fell this week as markets softened somewhat in response to the recent WASDE report. This dynamic has Asian buyers, among others, showing renewed interest. DDGS FOB Gulf are at $208 for September shipment. Container rates to Southeast Asia are down on average $7/MT from last week, while container rates to Bangladesh and Myanmar are mostly unchanged. Container rates to Japan are down $4/MT from last week and stand at $247/MT for September shipment. Merchandisers reported sales to Indonesia and Vietnam..

2 DDGS reference prices as per survey report (current week): DDGS Price Table: August 16, 2018 (USD/MT) (Quantity, availability, payment and delivery terms vary) Delivery Point Quality Min. 35% Pro-fat combined September October November Barge CIF New Orleans FOB Vessel GULF Rail delivered PNW Rail delivered California Mid-Bridge Laredo, TX FOB Lethbridge, Alberta ft. Containers to South Korea (Busan) ft. Containers to Taiwan (Kaohsiung) ft. Containers to Philippines (Manila) ft. Containers to Indonesia (Jakarta) ft. Containers to Malaysia (Port Kelang) ft. Containers to Vietnam (HCMC) ft. Containers to Japan (Yokohama) ft. containers to Thailand (LCMB) ft. Containers to China (Shanghai) ft. Containers to Bangladesh (Chittagong) ft. Containers to Myanmar (Yangon) KC Rail Yard (delivered ramp) Elwood, IL Rail Yard (delivered ramp) Source: WPI, *Prices are based on offer indications only; terms of delivery, payment and quality may vary from one supplier to another, impacting the actual value of the price

3 Ocean Freight Market References: Bulk Freight Indices for HSS Heavy Grain, Sorghum and Soybeans* Route and Vessel Size Change Current from Week Previous (USD/MT) Report Remarks 55,000 U.S. Gulf-Japan $45.00 Up $1.00 Handymax at $46.00/MT 55,000 U.S. PNW-Japan $24.75 Up $0.50 Handymax at $25.00/MT 65,000 U.S. Gulf-China $44.00 Up $1.00 PNW to China $24.00 Up $0.50 North or South China 25,000 U.S. Gulf-Veracruz, Mexico $16.75 Up $0.25 3,000 MT daily discharge rate 35-40,000 U.S. Gulf-Veracruz, Deep draft and 6,000 MT/day $14.75 Up $0.25 Mexico discharge rate. 25/35,000 U.S. Gulf-East Coast $20.00 Up $0.25 West Coast Colombia at Colombia $28.50 From Argentina $34.25 Up $ ,000 U.S. Gulf-Guatemala $29.00 Up $0.25 Acajutla/Quetzal-8,000 out 26-30,000 U.S. Gulf-Algeria $32.75 Up $1.00 8,000 MT daily discharge $34.25 Up $1.00 3,000 MT daily discharge 25-30,000 US Gulf-Morocco $35.25 Up $1.00 Discharge rate: 5,000 55,000 U.S. Gulf-Egypt $29.50 Up $ ,000-60,000 MT PNW to Egypt $28.75 Up $1.00 Russia Black Sea-Egypt $ ,000 U.S. Gulf-Europe- Rotterdam $21.75 Unchanged Handymax at +$1.75 more Brazil, Santos-China $36.25 Up $ ,000 Supramax-Panamax Itacoatiara Port up River $35.50 Up $ ,000 Post Panamax Amazonia North Brazil-China $39.00 Up $ ,000 Argentina-China $40.75 Up $0.25 Upriver with BB top-off $42.50 Latest Export Figures from GATS in Metric Tons (MT): ***JUNE 2018*** Notes: 1. Data Source: Department of Commerce, U.S. Census Bureau, Foreign Trade Statistics 2. (*) denotes a country that is a summarization of its component countries. 3. Users should use cautious interpretation on QUANTITY reports using mixed units of measure. QUANTITY line items will only include statistics on the units of measure that are equal to, grouped commodities. Or are able to be converted to, the assigned unit of measure of the grouped commodities. 4. Product Group : BICO-HS10

4 CALENDAR YEAR EXPORT DATA: COUNTRY 2015 YR 2016 YR 2017 YR Jan/Jun 2017 Jan/Jun 2018 % Change Net Change World Total 12,694,806 11,311,616 11,028,385 5,516,088 5,666, ,673 Mexico 1,650,235 1,907,573 2,184,385 1,081,864 1,031, ,351 Turkey 207, ,613 1,417, , , ,712 Korea, South 635, , , , , ,341 Thailand 396, , , , , ,043 Indonesia 229, , , , , ,034 Canada 512, , , , , ,994 Japan 241, , , , , ,141 China 6,461,071 2,341, , ,537 96, ,407 Ireland 248, , , , , ,325 Vietnam 650,336 1,153, ,278 2, , ,459 Spain 150, , , , , ,743 Israel(*) 124, , , , , ,456 Taiwan 196, , , ,712 99, ,887 Morocco 110, , , , , ,980 United Kingdom 152, , , ,296 62, ,934 Colombia 123, , ,653 97,914 98, New Zealand(*) 26,922 71, ,857 47,810 79, ,508 Egypt 95, , ,414 68, , ,873 Philippines 106, , ,961 73,233 73, Bangladesh 17,547 35, ,010 37,501 70, ,519 Costa Rica 83,258 84,896 89,413 46,404 40, ,254 Malaysia 36,884 56,945 74,929 45,115 35, ,932 El Salvador 60,404 57,647 62,499 35,813 37, ,302 Cambodia 24,087 30,034 57,291 23,540 24, Saudi Arabia ,291 25,248 4, ,004 Portugal - 17,550 55,661 36,354 10, ,009 Guatemala 42,817 46,684 52,224 30,883 25, ,466 Honduras 40,016 42,338 44,618 24,967 23, ,459 Pakistan 3,912 65,239 42,510 18, ,549 Burma 5,597 24,599 36,836 14,281 31, ,695 Sri Lanka 1,951 5,835 33,015 14,627 8, ,243 CROP YEAR EXPORT DATA:

5 COUNTRY 2015 YR 2016 YR 2017 YR Sept/Jun 2016/17 Sept/Jun 2017/18 % Change Net Change World Total 11,626,894 11,633,148 11,058,209 9,299,813 9,420, ,849 Mexico 1,591,540 1,900,979 2,063,793 1,691,947 1,762, ,241 Turkey 344, ,540 1,364,617 1,107, , ,230 Korea, South 620, , , , , ,803 Thailand 405, , , , , ,516 China 5,366,088 3,342, , , , ,878 Canada 548, , , , , ,048 Indonesia 230, , , , , ,809 Vietnam 552, , , , , ,898 Japan 295, , , , , ,107 Spain 83, , , , , ,208 Ireland 260, , , , , ,441 Taiwan 204, , , , , ,249 Israel(*) 103, , , , , ,960 United Kingdom 124, , , , , ,321 Morocco 100, , , , , ,216 Colombia 111, , , , , ,057 Philippines 106, , , , , ,243 New Zealand(*) 49,128 32, ,075 91, , ,290 Egypt 125,295 84, , , , ,532 Bangladesh 12,043 27,272 86,822 58, , ,707 Costa Rica 78,482 93,507 82,722 69,117 69, Malaysia 39,132 42,184 82,100 72,740 55, ,103 El Salvador 49,624 66,430 62,676 51,921 53, ,125 Guatemala 46,420 48,087 55,705 46,325 37, ,947 Portugal 3,300 14,250 48,953 39,654 20, ,301 Cambodia 23,750 26,930 48,623 38,837 48, ,472 Saudi Arabia ,599 25,635 13, ,312 Pakistan 5,205 61,096 48,398 24, ,437 Honduras 39,016 43,510 43,244 37,403 37, Burma 3,294 14,065 35,882 28,256 46, ,649 Peru 14,664-31,627 27,304 20, ,049 Sri Lanka 2,874 4,538 23,422 17,201 20, ,350

6 9/1/ /1/ /1/ /1/2015 1/1/2016 2/1/2016 3/1/2016 4/1/2016 5/1/2016 6/1/2016 7/1/2016 8/1/2016 9/1/ /1/ /1/ /1/2016 1/1/2017 2/1/2017 3/1/2017 4/1/2017 5/1/2017 6/1/2017 7/1/2017 8/1/2017 9/1/ /1/ /1/ /1/2017 1/1/2018 2/1/2018 3/1/2018 4/1/2018 5/1/2018 6/1/2018 7/1/2018 8/1/2018 9/1/2018 DOLLARS PER METRIC TON FOB U.S.A. Gulf DDGS & Corn prices (MT): $ $ FOB US GULF DDGS & CORN PRICES Corn FOB Gulf Spot Delivery DDGS FOB Gulf Spread FOB DDGS VS CORN Linear (Corn FOB Gulf Spot Delivery) $ $ $ $ $ $ $ $50.00 $35.08 $0.00 -$ $ DATE

7 Council News: