Ethanol Blog

Factors that could affect future dried distillers grains markets could include such issues as genetic engineering and purchasing from China, according to a speaker at the Distillers Grains Technology Council's annual symposium in Kansas City, Missouri on Wednesday.

Randy Ives, Director of Ethanol Services at Gavilon, LLC., said that genetically-engineered traits are still causing trade disruptions, even after the huge trade disagreement with China was resolved after it approved the MIR 162 trait produced by Syngenta. Many other countries are in various stages of approving biotech traits from the U.S.

The future of corn and DDG trade with China is somewhat uncertain, as China has a surplus of corn from last year and may need to use up some of its own stocks before importing more.

Other issues that may affect the DDG market is the total of grain consuming animal units (GCAUs) that are up 6% currently, but still 2.6% below the 2008 to 2013 average.

The trend of removing corn oil from DDG is still growing, but also is the "new normal," Ives said. Oil removal capacity is now used in 95% of all DDG produced. The next step will likely be to remove even larger percentages of oil, he said.

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

(ES)

© Copyright 2015 DTN/The Progressive Farmer. All rights reserved.