DTN Weekly Distillers Grains Update
Low-Oil DDGS, Regulatory Issues Top List of Symposium Topics
A wide array of topics crucial to the distillers grains industry are planned for the 18th Distillers Grains Symposium, May 14-15 in Irving, Texas. The annual event is hosted by the Distillers Grains Technology Council.
Kurt A. Rosentrater, executive director of the Distillers Grains Technology Council, and the council's board of directors have worked since September building the agenda and list of symposium speakers to cover issues crucial to the industry, Rosentrater said.
An important topic that will again be covered at this year's event is low-oil DDG.
"An estimated 85% of ethanol plants are now extracting oil, and that number is expected to grow in the next year," Rosentrater told DTN. "Research is still being done, as we don't yet fully understand how removing oil will impact livestock digestibility and performance."
Use of low-oil DDG for all four major livestock segments will be covered at the symposium. Speakers are Dr. Andy Cole, USDA-ARS (beef); Dr. Hans Stein, University of Illinois (swine); Dr. Lou Armentano, University of Wisconsin (dairy); Dr. Sally Noll, University of Minnesota (poultry).
Regulatory issues such as the upcoming Food Safety Modernization Act will also be covered. On March 31, the public comment period ended for the proposed rule, so FDA will now be considering all the comments before implementation of the act.
Leah Wilkinson, from the American Feed Industry Association will talk about FSMA and how its requirements will affect every ethanol and beverage alcohol plant.
"Leah will talk about what facilities need to worry about and how to get themselves in a position to be ready to implement whatever the new regulations will be, such as good manufacturing processes, feed safety and ultimately human safety," Rosentrater said.
Also, Dr. Tim Herrman from the Texas State Chemist's office will speak about such regulatory issues from a state chemist's perspective.
Several speakers will address sales and marketing of DDGS, Rosentrater said.
Steve Markham from CHS, Inc., will talk about domestic sales and marketing, while Alvaro Cordero from the U.S. Grains Council will address international sales and marketing of DDGS, current trends and what the future may hold for the export market.
Paul Emberland, Christiansen & Associates, will also discuss the subjects, but from more of an economic standpoint of corn, DDGS and ethanol plants, as well as plant efficiencies and how new technologies like oil extraction affect the bottom limit for plants.
A topic new to the symposium will be the use of sorghum-based DDGS in cattle diets by James MacDonald from the University of Nebraska. MacDonald will share current research on sorghum DDGS, as well as how it compares to corn DDGS.
Other presentations at the symposium will be:
-- Flow of Nutrients Through the Ethanol & DDGS Production process by Dr. Dennis Bayrock, PhibroChem.
-- Effects of Drying on DDGS Protein Quality by Kosta Kanellis, GEA Westfalia.
-- Processing of DDGS into Livestock Feeds by Dr. Charles Stark, Kansas State University.
The symposium will also include posters by winners of graduate student scholarships, as well as brief presentations by each scholarship winner on their research projects.
As always, the event will include a trade show, a networking/cocktail reception at the end of the first day, as well as a golf outing the day before.
The symposium will be held at the Omni Mandalay Hotel at Las Colinas in Dallas (Irving), Texas. For detailed information regarding registration or hotel reservations, go to the council's website (http://www.distillersgrains.org). Early-bird registration is available at a reduced rate through April 11.
Rosentrater said he is very excited about the upcoming event, his first since being appointed after long-time executive director Charlie Staff retired.
"It's a dynamic time in the industry. There are many changes both domestically and internationally," he said. "There are many challenges we need to overcome, and hopefully this symposium will cover all these topics with key researchers in the field."
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.
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IN THE NEWS
DDG in Poultry Rations Decreases Greenhouse Gas Emissions
Greenhouse gas emission from poultry production can potentially be reduced by adding co-products such as dried distillers grains with solubles, according to an article by World Poultry (http://bit.ly/…).
A new joint study conducted by British scientists from Newcastle and Cranfield Universities compared the Global Warming Potential of broiler meat and eggs with a standard soybean-based diet with alternative diets using processed animal protein (for broilers) or DDGS. The researchers hoped that alternative protein sources could reduce greenhouse gas emission related to land use by replacing soy in the diets.
During the study, researchers used a Life Cycle Assessment using data provided by the broiler and egg industries. They found that the GWP of broiler meat decreased as much as 11% with PAP. Although performance was not affected, birds on the DDGS diet had a higher nitrogen excretion rate that caused higher N20 emission, causing a negative effect.
The researchers said more environmental criteria must be studied to make a valid judgment on the environmental impact of the co-product, and also said that the cost of co-products must remain low and supplies adequate to remain a viable option.
U.S. Grains Council Positions U.S. Corn for Future Sales to Vietnam
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While corn exports to Vietnam have met with some restraint, the country has proved a consistent market for exports of U.S. dried distillers grains with solubles. The U.S. Grains Council is using a recent spike in U.S. corn exports and success with DDGS exports to position Vietnam for future sales, according to an article by the council (http://bit.ly/…).
In recent years, exports of U.S. corn have been constrained by competition from neighboring India, as well as a $5 to $7 per ton savings in shipping for South American corn versus U.S. corn shipped from the Gulf.
One advantage is a recent upturn in corn exports, as the council has successfully battled the misconception that U.S. corn is too wet for Southeast Asian Climates, which has resulted in Vietnam purchasing record amounts of amounts. The council has also heard from many buyers who are pleased with the quality of the corn.
Another reason for the increases in Vietnam's interest in U.S. corn was the disruption of cargoes to China, which forced cargoes to other Asian markets. Vietnam, along with other neighboring countries, took advantage of the opportunity.
Adel Yusupov, USGC regional director of Southeast Asia, said that Vietnamese buyers have been very receptive to the 2013/2014 USGC Corn Harvest Quality Report. He has hosted groups of Vietnamese buyers in the U.S. to inspect U.S. production and shipping systems, and is planning a trip back to Vietnam soon to meet with buyers and end-users at a corn outlook seminar.
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.
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DTN WEEKLY DISTILLERS GRAIN SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 4/4/2014 | 3/28/2014 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $252 | $245 | $7 | |
| Modified | $125 | $125 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $235 | $255 | -$20 | |
| Indiana | Dry | $255 | $255 | $0 | |
| Iowa | Dry | $240 | $240 | $0 | |
| Michigan | Dry | NO | NO | ||
| Minnesota | Dry | $225 | $230 | -$5 | |
| North Dakota | Dry | $230 | $230 | $0 | |
| New York | Dry | NO | NO | ||
| South Dakota | Dry | $230 | $230 | $0 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | $235 | $235 | $0 | |
| Modified | $90 | $72 | $18 | ||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $240 | $240 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $245 | $225 | $20 | |
| Wet | $100 | $95 | $5 | ||
| Illinois | Dry | $265 | $260 | $5 | |
| Nebraska | Dry | $245 | $225 | $20 | |
| Wet | $100 | $95 | $5 | ||
| Wisconsin | Dry | $235 | $230 | $5 | |
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $250 | $245 | $5 | |
| Indiana | Dry | $245 | $240 | $5 | |
| Iowa | Dry | $230 | $230 | $0 | |
| Michigan | Dry | $245 | $240 | $5 | |
| Minnesota | Dry | $220 | $220 | $0 | |
| Nebraska | Dry | $240 | $238 | $2 | |
| New York | Dry | $255 | $255 | $0 | |
| North Dakota | Dry | $230 | $220 | $10 | |
| Ohio | Dry | $245 | $245 | $0 | |
| South Dakota | Dry | $230 | $220 | $10 | |
| Wisconsin | Dry | $230 | $230 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $260 | $260 | $0 | |
| Iowa | Dry | $230 | $225 | $5 | |
| Minnesota | Dry | $230 | $225 | $5 | |
| Nebraska | Dry | $235 | $230 | $5 | |
| Ohio | Dry | $260 | $260 | $0 | |
| South Dakota | Dry | $225 | $225 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $350 | $355 | -$5 | |
| *Prices listed per ton. | |||||
| Weekly Average | $239 | $236 | $3 | ||
| 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 | 4/3/2014 | $5.0000 | $178.57 | |
| Soybean Meal | 4/3/2014 | $480.10 | ||
| DDG Weekly Average Spot Price | $239.00 | |||
| DDG Value Relative to: | 4/4 | 3/28 | 3/21 | |
| Corn | 133.84% | 134.31% | 137.95% | |
| Soybean Meal | 49.78% | 50.16% | 51.77% | |
| Cost Per Unit of Protein: | ||||
| DDG | $9.56 | $9.44 | $9.44 | |
| Soybean Meal | $10.11 | $9.91 | $9.60 | |
| 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 27, 2014)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 235.00-260.00 | 75.00-110.00 | 52.00-65.00 |
| Minnesota | 240.00-250.00 | 90.00 | 80.00 |
| Nebraska | 230.00-240.00 | 85.00-115.00 | 65.00-76.00 |
| South Dakota | 240.50-245.00 | 92.00-104.00 | 65.00-70.00 |
| Wisconsin | 230.00-245.00 | 107.00-115.00 | NQ |
| Eastern Corn Belt | 230.00-265.00 | 90.00-105.00 | NQ |
| Kansas | 230.00-250.00 | NQ | 65.00-77.00 |
| Northern Missouri | 245.00-255.00 | NQ | 70.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 265.00-310.00 | ||
| Pacific Northwest | 288.00-326.00 | ||
| California | 285.00-312.00 | ||
| Texas Border (metric ton) | 325.00-345.00 | ||
| Lethbridge AB | 280.00 | ||
| Chicago | 245.00-260.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Apr 1, 2014)
Distillers Dry Grains
FOB Truck NA
Rail Delivered California Points 325.00-345.00 no comp
PACIFIC NORTHWEST WEEKLY FEED (Tue Apr 1, 2014)
Offers for Distillers Dried Grains delivered in April by rail to feed mills in the Pacific Northwest were 295.00-317.00, steady with week ago offers. Offers for distillers dried grains trans-loaded onto trucks and delivered during April to Willamette Valley dairies were 310.00-335.00, also steady with 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.) |
| 3/07/14 | 86461 | 8878 | 1644 | 96983 | 4526016 |
| 3/14/14 | 88650 | 9103 | 1686 | 99438 | 4640598 |
| 3/21/14 | 88053 | 9041 | 1674 | 98769 | 4609348 |
| 3/28/14 | 91734 | 9419 | 1744 | 102898 | 4802056 |
*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.
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