DTN Weekly Distillers Grains Update
New Cellulosic DDG Maintains Performance in Feeding Trials
DAVENPORT, Neb. (DTN) -- Distillers grains from a newly patented secondary fermentation process have proven to cause no significant loss in performance in beef steers, according to a recent Iowa State University feeding trial.
The new cellulosic ethanol technology was developed by Syngenta in an agreement with Cellulosic Ethanol Technologies, LLC and is being produced by Quad County Corn Processors (QCCP) bio-refinery in Galva, Iowa, Rick Heaton, co-product merchandiser for QQCP, told DTN. The QCCP bio-refinery is a farmer-owned, 35 million gallon ethanol that was the second plant to open in Iowa in 2003.
The licensed technology, called "Adding Cellulosic Ethanol" (ACE), involves a secondary fermentation process that allows the fiber, as well as the starch, in a corn kernel to be converted into ethanol. Pre-treatment with a combination of cellulosic enzymes, yeast and heat is used to break down starch and fiber, Heaton said.
The ACE technology increases ethanol production and corn oil production, as well as the protein content in the DDG. The process also reduces natural gas usage and improves the carbon footprint of ethanol plants, as the DDG is only exposed to additional heat for a few seconds.
The process leaves the resulting DDG 20%-25% higher in protein than regular DDG and about 20%-25% lower in oil. Heaton said the company is still fine-tuning the process and the exact fiber level is not known yet. Heaton added that the quantity of DDG mass will be reduced approximately 15% because of the fiber fermentation and oil removal.
The QCCP plant is the first ever to begin using the patented technology. The company has entered into an agreement with Syngenta to market the technology to other ethanol plants under licensing agreements in the future.
Heaton said the ACE DDG will be sold by the ton, but said that no pricing has been finalized. He added that the AVE DDG should have a higher value, especially to those looking for high-protein DDG, such as dairies and the export market.
While the initial ACE DDG will be sold in wet form, the company will eventually also produce a high protein, dry product as well.
The company will soon begin the start-up/transition phase and will likely have the final product formulated by the end of the summer.
ISU FEEDING TRIAL
A recent feeding trial was conducted at ISU examining the effect of the new ACE DDG on animal performance, according to Erika Lundy, ruminant nutrition graduate research assistant at Iowa State University working with Dr. Dan Loy and Dr. Stephanie Hansen.
Lundy was selected by the Distillers Grains Technology Council as one of the 2014 graduate student research scholarship winners for her feeding trial/research in May at the Council's annual symposium in Dallas in May.
Lundy said she grew up on a farm that included a cow-calf and feedlot operation and was always interested in the beef industry and feeding co-products. When Quad County Corn Processors in Galva, Iowa, approached ISU about possible research on their new process and DDG, it captured her interest.
"It was something new and on the leading edge of technology, and it really interested me," she said.
Lundy's feeding trial that compared performance and carcass characteristics of cattle fed traditional wet distillers grains (T-WDG) with Quad County's ACE wet distillers grains (A-WDG)
The trial involved 168 steers that were assigned to one of four treatments for 94 days:
1. Corn-based control with 13% T-WDG on a dry matter basis.
2. 30% T-WDG.
3. 30% A-WDG.
4. 30% A-WDG plus solubles (A-WDGS).
At the end of the 94 days, Lundy found that feed conversion was the same between the steers fed the A-WDG diet and the A-WDGS diet. However, there was a decreased dry matter intake and average daily gain with steers fed the A-WDGS diet, likely because of the increased sulfur in the solubles.
"Adding back solubles may be a limiting factor," she said. "At the rate of solubles added to WDG in this trial, the sulfur level may have limited performance of steers fed A-WDGS.”
Lundy also found that there were no differences in quality grade between all four dietary treatments.
It was no surprise, however, that the study confirmed that wet distillers grains were higher in feeding value and energy content than corn.
"During the ethanol process, the starch is removed from the corn kernel and the remaining nutrients are concentrated in wet distillers grains. Thus, distillers grains are higher in energy and protein than corn," Lundy said.
The steers finished on the T-WDG had improved average daily gain, feed conversion, heavier final body weights, hot carcass weights and larger rib-eye areas compared to the steers fed the corn-based control diet.
The feeding trial showed that the significant feeding value of co-products made from the secondary fermentation process can be maintained. Whether the steers were fed the A-WDG or the T-WDG, the animals had similar ADG, final body weights, hot carcass weights, rib-eye areas and marbling scores.
But even though the animals fed the A-WDG had similar body weights and ADG than the T-WDG, the steers fed the A-WDG had to eat more to maintain their performance, therefore the feed conversion was slightly less efficient. Those fed the A-WDG also had decreased back fat thickness.
The most important thing learned from the feeding trial was that the distillers grains from the secondary ethanol process can be used with no significant loss in performance, Lundy said.
"We've had a lot of producers ask about how the distillers made from cellulosic ethanol production will affect cattle," she said. "Many were afraid that using distillers grains from cellulosic ethanol would hurt performance. We didn't see that.
"Based on this study, we are not expecting to see any major differences," she said.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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IN THE NEWS
U.S. Infrastructure Problems Growing
U.S. infrastructure problems are mounting, with a great need for modernization and solutions to maintenance backlogs, railcar shortages and weather-induced delays, according to an article by the U.S. Grains Council (http://bit.ly/…).
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While once the U.S. led the world in its export infrastructure, it is now showing signs of age. With the railroad playing a vital role for agriculture and related markets, now is the time to update the infrastructure for the future.
Most merchandisers of ethanol and dried distillers grains would likely agree, especially after weather-related issues most of the winter caused rail delays that took weeks, if not months, to normalize. Even now, some in the industry still complain of not being able to get rail cars returned in a timely manner.
Hasan Hyder, assistant vice president of grains and grain product for Union Pacific Railroad, will speak about efforts the railroad is planning to resolve logistical issues at the U.S. Grains Council's 54th Annual Board of Delegates meeting in Omaha, Neb., July 28-30, 2014.
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.
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DTN WEEKLY DISTILLERS GRAIN SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 6/27/1900 | 6/27/1900 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $165 | $185 | -$20 | |
| Modified | $85 | $90 | -$5 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $160 | $175 | -$15 | |
| Indiana | Dry | $160 | $170 | -$10 | |
| Iowa | Dry | $155 | $155 | $0 | |
| Michigan | Dry | $180 | $180 | $0 | |
| Minnesota | Dry | $120 | $120 | $0 | |
| North Dakota | Dry | $120 | $120 | $0 | |
| New York | Dry | $175 | $175 | $0 | |
| South Dakota | Dry | $120 | $120 | $0 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | $152 | $163 | -$11 | |
| Modified | $70 | $70 | $0 | ||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $145 | $150 | -$5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $150 | $155 | -$5 | |
| Iowa | Dry | $120 | $120 | $0 | |
| Michigan | Dry | $170 | $170 | $0 | |
| Minnesota | Dry | $122 | $122 | $0 | |
| Missouri | Dry | $145 | $145 | $0 | |
| Ohio | Dry | $165 | $165 | $0 | |
| South Dakota | Dry | $115 | $115 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $165 | $170 | -$5 | |
| Wet | $55 | $70 | -$15 | ||
| Illinois | Dry | $195 | $200 | -$5 | |
| Nebraska | Dry | $165 | $170 | -$5 | |
| Wet | $55 | $70 | -$15 | ||
| Wisconsin | Dry | $185 | $190 | -$5 | |
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $165 | $165 | $0 | |
| Indiana | Dry | $165 | $165 | $0 | |
| Iowa | Dry | $130 | $130 | $0 | |
| Michigan | Dry | $170 | $170 | $0 | |
| Minnesota | Dry | $120 | $120 | $0 | |
| Nebraska | Dry | $135 | $135 | $0 | |
| New York | Dry | $190 | $190 | $0 | |
| North Dakota | Dry | $110 | $110 | $0 | |
| Ohio | Dry | $165 | $165 | $0 | |
| South Dakota | Dry | $110 | $110 | $0 | |
| Wisconsin | Dry | $155 | $155 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $150 | $170 | -$20 | |
| Iowa | Dry | $110 | $120 | -$10 | |
| Minnesota | Dry | $105 | $110 | -$5 | |
| Nebraska | Dry | $110 | $120 | -$10 | |
| Ohio | Dry | $155 | $165 | -$10 | |
| South Dakota | Dry | $100 | $110 | -$10 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $217 | $233 | -$16 | |
| *Prices listed per ton. | |||||
| Weekly Average | $144 | $148 | -$4 | ||
| The weekly average prices above reflect only those companies DTN | |||||
| collects spot prices from. States include: Missouri, Iowa, Nebraska, | |||||
| Kansas, Illinois, Minnesota, North Dakota, South Dakota, Michigan, | |||||
| Wisconsin and Indiana. Prices for Pennsylvania, New York and | |||||
| California are not included in the averages. | |||||
*The spot prices gathered by DTN are only intended to reflect general market trends and may vary. Please contact individual plant or merchandiser for exact prices.
If you would be willing to take a weekly phone call and have your distiller grains spot prices listed in this feature, please contact Cheryl Anderson at (308) 224-1527 or (800) 369-7875, or e-mail cheryl.anderson@dtn.com.
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| VALUE OF DDG VS. CORN & SOYBEAN MEAL | ||||
| Settlement Price: | Quote Date | Bushel | Short Ton | |
| Corn | 7/3/2014 | $4.1700 | $148.93 | |
| Soybean Meal | 7/3/2014 | $447.00 | ||
| DDG Weekly Average Spot Price | $144.00 | |||
| DDG Value Relative to: | 7/4 | 6/27 | 6/20 | |
| Corn | 96.69% | 93.60% | 99.45% | |
| Soybean Meal | 32.21% | 31.79% | 35.46% | |
| Cost Per Unit of Protein: | ||||
| DDG | $5.76 | $5.92 | $6.40 | |
| Soybean Meal | $9.41 | $9.80 | $9.50 | |
| Notes: | ||||
| Corn and soybean prices taken from DTN Market Quotes. DDG | ||||
| price represents the average spot price from Midwest | ||||
| companies collected on Thursday afternoons. Soybean meal | ||||
| cost per unit of protein is cost per ton divided by 47.5. | ||||
| DDG cost per unit of protein is cost per ton divided by 25. | ||||
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USDA MARKET NEWS/DISTILLER GRAINS PRICES
USDA WEEKLY DISTILLERS GRAINS SUMMARY (June 27, 2014)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 120.00-165.00 | 60.00-80.00 | 35.00-48.00 |
| Minnesota | 130.00-145.00 | 75.00 | 55.00A |
| Nebraska | 125.00-145.00 | 60.00-74.00 | 45.00-59.00 |
| South Dakota | 115.00-130.00 | 65.00-73.00 | 32.00-40.00 |
| Wisconsin | 165.00-180.00 | 75.00-100.00 | NQ |
| Eastern Corn Belt | 160.00-175.00 | 85.00-90.00 | NQ |
| Kansas | 145.00-160.00 | NQ | 54.00-65.00 |
| Northern Missouri | 145.00-160.00 | 95.00 | 55.00-60.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 195.00-210.00 | ||
| Pacific Northwest | 214.00-228.00 | ||
| California | 212.00-225.00 | ||
| Texas Border (metric ton) | 240.00-260.00 | ||
| Lethbridge AB | 160.00 | ||
| Chicago | 185.00-205.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Jul 1, 2014)
Distillers Dry Grains
FOB Truck 225.00-239.00 dn 8.00-unch
Rail Delivered California Points 220.00-225.00 dn 5.00-4.00
PACIFIC NORTHWEST WEEKLY FEED (Tue Jul 1, 2014)
Offers for Distillers Dried Grains delivered in June by rail to feed mills in the Pacific Northwest were 215.00-218.00, 7.00 to 12.00 lower than week ago offers. Offers for distillers dried grains trans-loaded onto trucks and delivered during June to Willamette Valley dairies were 230.00-236.00, 9.00 to 10.00 lower than week ago offers.
*All prices quoted per ton unless otherwise noted.
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RFA WEEKLY U.S. LIVESTOCK FEED PRODUCTION
| CO-PRODUCT OUTPUTS (metric tons) | |||||
| Week Ending | Distillers Grains | Corn Gluten Feed | Corn Gluten Meal | Total Feed | Corn Oil (lbs.) |
| 6/06/14 | 93923 | 9644 | 1786 | 105353 | 4916638 |
| 6/13/14 | 96709 | 9930 | 1839 | 108478 | 5062471 |
| 6/20/14 | 93326 | 9583 | 1775 | 104684 | 4885388 |
| 6/27/14 | 94819 | 9736 | 1803 | 106358 | 4963513 |
*Information from 2010 Weekly U.S. Fuel Ethanol/Livestock Feed Production report (http://www.ethanolrfa.org/…)
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DDG LINKS/RESOURCES
Organizations
*Distillers Grains Technology Council
http://www.distillersgrains.org
*National Corn Growers Association Corn Distillers Grains Brochure
*Iowa Corn
Nebraska Corn Board
*Renewable Fuels Association - Ethanol Co-Products
*American Coalition for Ethanol
*U.S. Grains Council
*South Dakota Corn Utilization Council
http://www.drieddistillersgrains.com
Government Sites
*Iowa Department of Agriculture and Land Stewardship/Office of Renewable Fuels & Coproducts
http://www.distillersgrains.com
University Sites
*University of Minnesota - Distillers Grains By-Products in Livestock
and Poultry Feed
*University of Illinois - Illinois Livestock Integrated Focus Team Distillers Grains site
http://ilift.traill.uiuc.edu/…
*University of Nebraska - Beef Cattle Production By-Product Feeds site
*University of Nebraska Extension
*Iowa Beef Center - Iowa State University
http://www.iowabeefcenter.org/…
*University of Missouri - Byproducts Resource Page
*South Dakota State University - Dairy Science Department - Dairy cattle research
(select "Distillers Grains" from the topic menu)
*Purdue University Renewable Energy Web Site
http://www.extension.purdue.edu/…
(select "Biofuels Co-Products from the menu)
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DDG CONFERENCES
*Distillers Grains Technology Council Inc.'s 16th Annual Distillers Grains Symposium
The Distillers Grains Technology Council will hold its 18th Annual Distillers Grains Symposium on May 14-15, 2014 at the Omni Mandalay at Las Colinas, Dallas, Texas. For information, contact the DGTC office at (502) 852-1575 or (800) 759-3448, or check the DGTC website (http://www.distillersgrains.org).
(If you are sponsoring or know of any event, conference or workshop on distillers grains, and would like to list it in the DTN Weekly Distillers Grains Update, please contact Cheryl Anderson (see contact info below).
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We welcome any comments/suggestions for this feature. Please let us know what information is valuable to you that we could include in the Distillers Grains Weekly Update. Please feel free to contact Cheryl Anderson at (402) 364-2183-1527, or e-mail cheryl.anderson@dtn.com.
Offers for Distillers Dried Grains delivered in June by rail to feed mills in the Pacific Northwest were 215.00-218.00, 7.00 to 12.00 lower than week ago offers. Offers for distillers dried grains trans-loaded onto trucks and delivered during June to Willamette Valley dairies were 230.00-236.00, 9.00 to 10.00 lower than week ago offers.
(PH/GH/ES/SKĂ‚Â)
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