DTN Weekly Distillers Grains Update

DDGS Supplementation May Aid in Development of Calves In Utero

How nutrition of gestating cows affects developing calves in utero is a research field that is wide open. Researchers at North Dakota State University have been examining this area, and in particular, how protein supplementation with dried distillers grains with solubles affects uterine blood flow.

Regardless of species, researchers have long known the importance of nutrition in gestating mothers.

"What a mom consumes dictates not only her performance, but also her offspring's performance," said Kim Vonnahme, associate professor of animal science at NDSU. "Conditions in utero set the stage for how the offspring perform outside the uterus."

Vonnahme said NDSU researchers have been looking at how the nutrition of gestating mothers affects factors such as carcass quality, fertility, birth weight, weaning weight and even milk production of offspring.

Universities across the U.S. are conducting research and seeing the benefits of proper feeding and management of moms in their offspring.

"While the offspring are still in utero, you are actually preparing for your replacement herd," she said. "Think of it as heifer development, since development really begins at the time of conception".

Researchers are looking at a wide variety of factors in feeding gestating mothers, such as the most important time in gestation to feed and when nutrition is optimal. Another area of interest is what nutrition gestating mothers need the most -- whether it is amino acids, protein, energy, vitamins or minerals.

One of the specific areas Vonnahme and other NDSU researchers are investigating is how protein supplementation in the form of DDGS impacts uterine blood flow in beef cows.

Uterine blood flow is vital since the baby is nourished by what comes through the umbilical cord, she explained.

Most species of meat animals, between conception and consumption, spend 25% to 45% of their lifetime in the uterus and are only nourished by the blood flow that comes in through the placenta and umbilical cord. The more blood flow, the more nutrients delivered to the baby.

While it is commonly thought that protein supplementation may also strengthen the immune systems of new calves, more research is needed to directly link the two. Vonnahme said she has done some work supplementing DDGS in beef cow rations and has collected colostrum; however, no data/results are available yet.

Vonnahme said DDGS is a good choice for protein supplementation in rations since it is a readily available energy source and a good way to enhance the amount of protein getting into the body of the animal. Also, DDGS is usually a good choice from an economic standpoint, she said.

NDSU researchers have completed one study using DDGS with a low-quality forage source (low quality hay), and another feeding DDGS and a corn-stalk forage base, supplemented with silage.

Although the exact statistics have yet to be tabulated, the DDGS/low-quality forage diet appears to have reduced uterine blood flow, while the DDGS/cornstalk forage/silage diets appears to have increased uterine blood flow.

Vonnahme pointed out a difference, however, in the winter conditions of the studies. The DDGS/low-quality forage diet study was completed during a more mild winter, while the other was done during harsher winter conditions with extreme cold temperatures.

The research team is looking at the forage source, weather and intake in examining the studies. The greater the dry matter intake, the greater the blood flow to the liver, where steroid hormones are made inactive.

"Not only does progesterone get inactivated, but also estrogen," she said. "Estrogen drives blood flow. The placenta makes a lot of estrogen during pregnancy, so we are looking to see if what the cow ate influences how much estrogen is circulating in the bloodstream."

Research into gestational nutrition may take years and various universities/researchers to undertake and combine data, Vonnahme said.

"Sometimes this kind of work can be challenging. You only have a crack at it once a year and you want to do your best to make sure you set up a good design for the research," she said. "But it seems like the more we try to figure out one question, we end up with another 10 questions."

In the end, Vonnahme said researchers want to understand the nutritional demands of gestating mothers and give good advice, but still need enough time and repetition in trials to ensure recommendations are correct.

"We want to be comfortable in saying what to feed and when to feed it, we just don't know for sure what and when that is yet," she said.

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

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IN THE NEWS

Canadian Researcher: Create Better Carcass With Barley, DDG

To increase the return on every carcass, beef producers need to minimize inputs and maximize outputs, according to Heather Bruce, carcass and meat science researchers from the University of Alberta.

In an article in Alberta Farm Express (http://bit.ly/…), Bruce said a quick, easy way to improve both average daily gain and carcass quality is by finishing cattle with grain. Grain-based diets improve the quality of beef, improve the taste, and add to production efficiency.

She said while "barley is king" in Canada in terms of rate of gain, DDG and triticale can also be used successfully.

Bruce told attendees at a recent feed workshop about her research in balancing energy and protein for growth and carcass composition. Animals were fed high or low levels of both energy and protein to determine how feed affected carcass quality.

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Bruce said the diets ended up with similar carcass composition in terms of fat; however, increasing the energy in the ration increased the amount of body fat and the low-energy, high-protein diet increased leanness.

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

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DTN WEEKLY DDG SPOT PRICES

CURRENT PREVIOUS
COMPANY STATE 3/27/2015 3/20/2015 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $190 $190 $0
Modified $90 $90 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $200 $200 $0
Indiana Dry $200 $200 $0
Iowa Dry $190 $190 $0
Michigan Dry NO NO
Minnesota Dry $170 $170 $0
North Dakota Dry $170 $170 $0
New York Dry $195 $195 $0
South Dakota Dry $170 $170 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $180 $180 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $180 $175 $5
Iowa Dry $170 $160 $10
Michigan Dry $185 $175 $10
Minnesota Dry $165 $165 $0
Missouri Dry $185 $185 $0
Ohio Dry $175 $165 $10
South Dakota Dry $165 $160 $5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $190 $190 $0
Wet $75 $75 $0
Illinois Dry $200 $200 $0
Nebraska Dry $190 $190 $0
Wet $75 $75 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $190 $190 $0
Indiana Dry $190 $185 $5
Iowa Dry $180 $175 $5
Michigan Dry $190 $190 $0
Minnesota Dry $175 $170 $5
Nebraska Dry $175 $170 $5
New York Dry $195 $195 $0
North Dakota Dry $190 $190 $0
Ohio Dry $190 $190 $0
South Dakota Dry $175 $175 $0
Wisconsin Dry $190 $190 $0
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $185 $185 $0
Iowa Dry $165 $160 $5
Minnesota Dry $170 $165 $5
Nebraska Dry $165 $160 $5
Ohio Dry $195 $185 $10
South Dakota Dry $160 $155 $5
Western Milling, Goshen, California (559-302-1074)
California Dry $248 $248 $0
*Prices listed per ton.
Weekly Average $181 $179 $2
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 3/26/2015 $3.9125 $139.73
Soybean Meal 3/26/2015 $322.40
DDG Weekly Average Spot Price $181.00
DDG Value Relative to: 3/27 3/20 3/13
Corn 129.53% 134.19% 130.39%
Soybean Meal 56.14% 56.06% 51.82%
Cost Per Unit of Protein:
DDG $7.24 $7.16 $7.12
Soybean Meal $6.79 $6.72 $7.23
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 (Mar 20, 2015)

Dried Modified Wet
FOB PLANT PRICES PER TON
Iowa 158.00-195.00 75.00-90.00 45.00-57.00
Minnesota 155.00-175.00 73.00 65.00
Nebraska 165.00-180.00 72.00-88.00 51.00-60.00
South Dakota 156.00-169.50 75.00-85.00 42.00-58.00
Wisconsin 175.00-190.00 80.00-85.00 NQ
Eastern Corn Belt 175.00-210.00 77.00-90.00 NQ
Kansas 185.00-195.00 NQ 60.00-70.00
Northern Missouri 188.00-210.00 NQ 63.00-71.00
DELIVERED PRICES PER TON
CIF NOLA 225.00-240.00
Pacific Northwest 235.00-245.00
California 233.00-245.00
Texas Border (metric ton) 260.00-275.00
Lethbridge AB 200.00
Chicago 203.00-216.00

Dried Distillers Grain: 10% Moisture

Modified Wet Distillers: 50-55% Moisture

Wet Distillers Grains: 65-70% Moisture

CALIFORNIA GRAIN AND FEED REPORT (Thurs Mar 17, 2015)

Distillers Dry Grains (includes fuel)

CURRENT LAST REPORT LAST YEAR
Mar 17, 2015 Mar 10, 2015 Mar 18, 2014
Rail to California Points 235.00-249.00 240.00-249.00 343.00
FOB Truck to California Points 245.00-251.00 242.00-245.00 345.00

PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Mar 24, 2015)

Distillers Dried Grains: Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were steady to 4.00 higher from 234.00-242.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were also steady to 4.00 higher from 252.00-257.00.

*All prices quoted per ton unless otherwise noted.

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NASS/USDA MONTHLY CO-PRODUCTS PRODUCTION

Dry and Wet Mill, Co-products and Products Produced - United States

Mar 2, 2015

Highlights:

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.86 million tons during January 2015 down 3% from December 2014, but up 5% from November 2014. Distillers wet grains (DWG) 65% or more moisture was 1.34 million tons in January 2015 down 5% from December 2014 and down 1% from November 2014.

Wet mill corn gluten feed production was 321.8 thousand tons during January 2015 down 2% from December 2014, but up 9% from November 2014. Wet corn gluten feed 40 to 60% moisture was 313.4 thousand tons in January 2015 down 7% from December 2014 and down 1% from November 2014.

Co-products and Products Nov 2014 Dec 2014 Jan 2015
Dry Mill
Condensed distillers solubles (CDS-syrup) 132,236 172,082 162,626
Corn oil 107,190 97,380 105,356
Distillers dried grains (DDG) 419,028 448,551 438,936
Distillers dried grains with solubles (DDGS) 1,770,904 1,919,823 1,862,550
Modified distillers wet grains (DWG) <65% moisture 1,354,729 1,411,411 1,341,938
Modified distillers wet grains (DWG) 40-64% moisture 472,819 503,258 480,134
Wet Mill
Corn germ meal 66,384 75,031 71,492
Corn gluten feed 295,030 329,431 321,768
Corn gluten meal 89,593 94,777 90,617
Corn oil 40,980 44,551 41,961
Wet corn gluten feed 40-60% moisture 317,273 338,077 313,400

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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.)
2/27/15 92630 9511 1761 103902 5477103
3/06/15 93923 9644 1786 105353 5553583
3/13/15 94222 9675 1792 105688 5571232
3/20/15 94819 9736 1803 106358 5606530

*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

http://ncga.com/…

*Iowa Corn

http://www.iowacorn.org/…

Nebraska Corn Board

http://www.nebraskacorn.org/…

*Renewable Fuels Association - Ethanol Co-Products

http://www.ethanolrfa.org/…

*American Coalition for Ethanol

http://www.ethanol.org/…

*U.S. Grains Council

http://www.grains.org/…

*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

http://www.ddgs.umn.edu

*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

http://beef.unl.edu/…

*University of Nebraska Extension

http://ianrpubs.unl.edu/…

*Iowa Beef Center - Iowa State University

http://www.iowabeefcenter.org/…

*University of Missouri - Byproducts Resource Page

http://agebb.missouri.edu/…

*South Dakota State University - Dairy Science Department - Dairy cattle research

http://dairysci.sdstate.edu/…

(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 19th Annual Distillers Grains Symposium

The Distillers Grains Technology Council will hold its 19th Annual Distillers Grains Symposium on May 13-14, 2015 at the Sheraton Crown Center at Kansas City, Missouri. For information, contact the DGTC office at (515) 294-4019 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, or e-mail cheryl.anderson@dtn.com.

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