DTN Weekly Distillers Grains Update
Effects of Varying DDGS Oil Levels on Beef Cattle Performance
With the widespread popularity of low-oil distillers grains, the ethanol and livestock industries have been increasingly examining how to best use this type of feedstock into livestock rations.
That was the motivation for a recent feeding trial conducted at North Dakota State University that examined the effects of varying corn oil levels in dried distillers grains with solubles on beef cattle performance during finishing, as well as the effects on carcass traits.
According to Vernon Anderson, animal scientist at North Dakota State University's Carrington Research Center, virtually every ethanol plant is now removing at least some degree of oil from the distillers grains it produces.
"There isn't a lot of hard data on low oil levels," Anderson said. "We wanted to explore what the effect was in a controlled environment."
Anderson added that a lot of DDGS produced in North Dakota is shipped to Canada, and those buyers were interested in the effect of lower fat levels as well.
While other feeding trials have looked at inclusion rates of low-oil DDGS in rations, the NDSU study looked at three levels of oil. The trial's Angus-sired yearling steers were fed one of four dietary treatments for about 100 days:
1. A control diet with no DDGS (sunflower meal included to provide similar protein levels).
2. A low-corn-oil diet (5.47%).
3. A medium-corn-oil diet (8.05%).
4. A high-corn-oil diet (12.96%).
Other ingredients in the ration included dry-rolled corn, chopped grass hay, corn silage, condensed separator byproduct and a supplement that contained vitamins, minerals and monensin sodium. The rations were fed at 19.4% dry matter, and the steers were offered as much as they wanted to eat.
Anderson said the three oil levels are those typically accepted by the industry for low-, medium- and high-oil DDGS. The three types of DDGS were sourced from three different ethanol plants.
"That's just what was available," he said. "No plant would alter their process to provide us with three fat levels."
During the trial, the steers were weighed at the beginning of the finish phase, at day 28 and at the end of the study.
At the conclusion of the trial, the researchers found that the various fat levels had only a minimal effect on dry matter intake, average daily gain, gain efficiency or carcass traits. However, the researchers did observe a slight trend (P = 0.07) toward higher marbling scores with increased fat in DDGS.
Although more marbling adds value to meat, Anderson said, the value per animal was less than a $5 difference in the carcass.
"The difference wasn't huge," he said. "When you do this kind of work, what's statistically significant isn't always the same as what's biologically important or economically critical."
He added that there was a linear increase (P = 0.07) in DMI with increasing fat levels for the first 28 days on feed; however, the ribeye area tended to decrease (P = 0.07) with increasing corn oil levels. Also, the yield grade increased linearly (P = 0.07) for both the control diet and the high-fat diet.
At the end of the study, researchers found that there was not as much effect on performance due to fat levels as they anticipated.
"Producers should still have confidence in the feeding value of DDG that are commercially available and know that they can use low-oil DDGS without any negative effects on performance," he said.
He added that distillers grains are now the cheapest protein, and have more energy compared to other protein sources.
"Even in a time of very competitive prices for feed grains, distillers grains are still very competitive as a protein source in feedlot diets," he said.
For more detail on the feeding trial, go to the 2014 NDSU Beef Report (http://bit.ly/…).
Anderson added that NDSU has another study already in progress that is looking at low and medium fat levels for growing and finishing steers. That study is being done in collaboration with researchers at the University of Lethbridge in Alberta, Canada, and will conclude in May 2015.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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IN THE NEWS
Japanese Importers Gains Confidence in U.S. DDGS
Japan's feed industry is becoming better acquainted with U.S. dried distillers grains with solubles after learning more about the DDGS production chain in October, according to an article by the U.S. Grains Council (http://bit.ly/…).
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With so many ethanol producers removing corn oil from DDGS, some Japanese livestock producers expressed concerns about how the low-oil DDGS might affect their livestock rations. Some acceptance of low-oil DDGS has begun to happen among Japanese end-users; however, the council continues its work to educate Japanese buyers with current technical information.
After the council's biennial Export Exchange held in Seattle last month, the council hosted a group of Japanese DDGS importers on a trip to learn about the DDGS production chain by traveling to California and South Dakota. The group learned information about sourcing corn for ethanol production and merchandizing, as well as DDGS trade and nutrition.
The council hopes that the trip will lead to higher inclusion rates of DDGS in Japanese feed and increase Japanese imports of U.S. DDGS in 2015.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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DTN WEEKLY DDG SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 11/14/2014 | 11/7/2014 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $125 | $125 | $0 | |
| Modified | $67 | $67 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $110 | $105 | $5 | |
| Indiana | Dry | $115 | $105 | $10 | |
| Iowa | Dry | $110 | $105 | $5 | |
| Michigan | Dry | $115 | $100 | $15 | |
| Minnesota | Dry | $95 | $95 | $0 | |
| North Dakota | Dry | $100 | $100 | $0 | |
| New York | Dry | $130 | $110 | $20 | |
| South Dakota | Dry | $110 | $95 | $15 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | $110 | $105 | $5 | |
| Modified | $50 | $50 | $0 | ||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $120 | $115 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $105 | $95 | $10 | |
| Iowa | Dry | $98 | $95 | $3 | |
| Michigan | Dry | $115 | $105 | $10 | |
| Minnesota | Dry | $96 | $95 | $1 | |
| Missouri | Dry | $118 | $105 | $13 | |
| Ohio | Dry | $112 | $98 | $14 | |
| South Dakota | Dry | $105 | $100 | $5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $120 | $115 | $5 | |
| Wet | $45 | $40 | $5 | ||
| Illinois | Dry | $125 | $110 | $15 | |
| Nebraska | Dry | $120 | $115 | $5 | |
| Wet | $45 | $40 | $5 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $110 | $100 | $10 | |
| Indiana | Dry | $110 | $105 | $5 | |
| Iowa | Dry | $105 | $100 | $5 | |
| Michigan | Dry | $110 | $105 | $5 | |
| Minnesota | Dry | $100 | $95 | $5 | |
| Nebraska | Dry | $115 | $115 | $0 | |
| New York | Dry | $165 | $165 | $0 | |
| North Dakota | Dry | $115 | $110 | $5 | |
| Ohio | Dry | $115 | $110 | $5 | |
| South Dakota | Dry | $110 | $100 | $10 | |
| Wisconsin | Dry | $95 | $95 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $110 | $105 | $5 | |
| Iowa | Dry | $115 | $105 | $10 | |
| Minnesota | Dry | $110 | $100 | $10 | |
| Nebraska | Dry | $125 | $105 | $20 | |
| Ohio | Dry | $115 | $105 | $10 | |
| South Dakota | Dry | $110 | $100 | $10 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $210 | $195 | $15 | |
| *Prices listed per ton. | |||||
| Weekly Average | $111 | $104 | $7 | ||
| 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 | 11/13/2014 | $3.8625 | $137.95 | |
| Soybean Meal | 11/13/2014 | $393.50 | ||
| DDG Weekly Average Spot Price | $111.00 | |||
| DDG Value Relative to: | 11/14 | 11/7 | 10/24 | |
| Corn | 80.47% | 78.44% | 76.28% | |
| Soybean Meal | 28.21% | 26.55% | 28.99% | |
| Cost Per Unit of Protein: | ||||
| DDG | $4.44 | $4.16 | $3.92 | |
| Soybean Meal | $8.28 | $8.25 | $7.42 | |
| 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 (Nov 07, 2014)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 95.00-125.00 | 45.00-50.00 | 24.00-34.00 |
| Minnesota | 90.00-105.00 | 40.00 | 40.00 |
| Nebraska | 100.00-127.00 | 50.00-67.00 | 38.00-49.00 |
| South Dakota | 90.00-103.50 | 46.00-57.50 | 26.00-28.00 |
| Wisconsin | 90.00-110.00 | 42.00-55.00 | NQ |
| Eastern Corn Belt | 90.00-120.00 | 40.00-53.00 | NQ |
| Kansas | 115.00-145.00 | NQ | 40.00-52.00 |
| Northern Missouri | 104.00-125.00 | NQ | 35.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 148.00-161.00 | ||
| Pacific Northwest | 179.00-190.00 | ||
| California | 176.00-190.00 | ||
| Texas Border (metric ton) | 195.00-225.00 | ||
| Lethbridge AB | ----- | ||
| Chicago | 105.00-115.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Wed Nov 12, 2014)
Distillers Dry Grains
Rail to California Points 185.00-207.00 unch-up 13.00
FOB Truck to California Points 195.00-210.00 unch-up 5.00
PACIFIC NORTHWEST WEEKLY FEED (Wed Nov 12, 2014)
Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were steady from 195.00-208.00. Offers for distillers dried grains trans-loaded onto trucks and delivered during September to Willamette Valley dairies were also steady from 213.00-223.00.
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*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.) |
| 10/10/14 | 87457 | 9041 | 1674 | 98173 | 5206484 |
| 10/17/14 | 88544 | 9154 | 1695 | 99393 | 5271197 |
| 10/24/14 | 92596 | 9572 | 1773 | 103941 | 5512401 |
| 10/31/14 | 91805 | 9491 | 1758 | 103053 | 5465337 |
*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
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, or e-mail cheryl.anderson@dtn.com.
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