Ethanol Blog

Coming Feed Year Should Bring Opportunities for Rations

Cheryl Anderson
By  Cheryl Anderson , DTN Staff Reporter

The coming feeding year should be one of great opportunities for cattle producers considering the low prices of corn, distillers grains with solubles (DGS) and other proteins, according to an article (http://bit.ly/…) in Tri-State Neighbor written by Alfredo DiCostanzo, member of the University of Minnesota Beef Team

In recent years, the appeal of U.S. DGS to export markets and higher feed prices in the U.S. had reduced DGS inclusion in diets of feedlot cattle. With the 2014 harvest, corn grain prices are expected to remain in the $3 to $3.50/bu range and prices of DGS are currently on a downward slide as well. In fact, DGS prices reached the lowest point in more than five years last week, propelled by a combination of lagging exports, excess supply and falling prices of competing ingredients.

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In the coming year, DiCostanzo predicts that the low prices of corn, DGS and soybean meal will help producers optimize cattle diets, as well as enhancing diet integrity and palatability.

DiCostanzao said he expects corn use to be maximized, and DGS inclusion rates to reflect optimum concentrations for protein contribution.

In the article, he states, "Current feed price conditions in the Upper Midwest provide ample opportunity for diet formulation creativity as long as feed supply is preserved and not wasted during storage, mixing or delivery."

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

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