Ethanol Blog
Cheryl Anderson DTN Staff Reporter

Monday 11/26/12

Lower DDGS Prices Still Too High for Canada

Even though prices of dried distillers grains with solubles have dropped significantly since late summer's record-breaking highs, prices are still too high for most livestock rations in Canada, according to an article by Alberta Farm Express (http://bit.ly/…).

Compared to other domestic feed stuffs, prices of DDGS are still too high to attract most Canadian buyers, with DDG delivered into Lethbridge still at about $325 per tonne, compared to the price of barley at $280 per tonne.

With many Canadian livestock feeders sitting on full bins of barley, they will likely use up those supplies before shipping in more DDGS. Also Manitoba had a good corn crop of its own this year, so domestic corn may push DDGS out of that market as well.

According to Ryan Slozka, senior commodity trader with B.C.-based Rycom Trading Ltd., end-users are buying mostly hand-to-mouth and ethanol plants are desperate for nearby sales, so both are uninterested in booking much forward contracting. This may push moving DDGS into Canadian feed markets further into the future and may make it more difficult.

Cheryl Anderson can be reached at Cheryl.anderson@telventdtn.com.

Posted at 4:21PM CST 11/26/12 by Cheryl Anderson
Comments (5)
Did southern Canada get a lot more rain than the lower United States? Maybe there is "too much" grass?
Posted by Robert Lawler at 8:16AM CST 11/27/12
Hi, I'm from west central Saskatchewan about 400 miles north of Montana. We had 26 inches of rain about double our yearly average. Some crops could handle the excess and some could not. Oats was super so was Canola until the disease and later high winds during harvest dropped expected yields in half. Barley was hit and miss but I've heard Alberta with all the cattle feeding infrastructure had bumper crops. Wheat in our area destined for ethanol was hitting 80 to 90 bu. on dryland and really paid off. We'll see more of that next year. Guy's will move out of Canola and into soft red to capitalize on the sub moisture we carry into spring and give the Canola acres a rest. Based on recent acquisition's large 4 wheel drive tractors, airdrills and farmland (less than $2,000.00 an acre) the farmers in this province are doing well.
Posted by DAYTON FUNK at 10:25AM CST 11/27/12
Does someone in Canada need a droughted out 700 head cow herd from SC KS ?
Posted by ALLEN MAZE at 7:09AM CST 11/29/12
Allen, you may want to run an add in the "Western Producer" the farmers bible up here. Kijij is a free website but post under farm equipt. Western Canada is your target. We have plenty of grass in this area but the land has slowly been broken up for the more lucrative Canola acres. One good frost and you will get calls. Hay still sells for $40 or $60 a ton up here. If you can get Canadian citizenship or partner with one you would be able to buy into several federal pasture and hay lands now available. Over a million acres coming on stream over the next 5 years under $400 per acre.
Posted by DAYTON FUNK at 10:23AM CST 11/30/12
Allen here's the story to follow: http://www.cbc.ca/news/canada/saskatchewan/story/2012/05/09/sk-pasture-lands-120509.html
Posted by DAYTON FUNK at 10:39AM CST 11/30/12
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