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.email@example.com.