DTN Weekly Distillers Grains Update
DDG Makes Good Choice to Dilute Fescue
Farmers and ranchers who battle fescue and its toxic effect on cattle may find diluting cattle diets with supplements such as dried distillers grains can be effective.
Fescue can house an endophyte, the toxin ergovaline, which has been linked to a number of issues in cattle, such as long, heavy haircoats, according to Patrick Davis, University of Missouri livestock specialist in southwest Missouri. Cattle with heavy coats typically do not shed off their winter coats as easily, which can make it difficult for the animal to dissipate heat, a serious problem during the heat of summer.
Fescue can also cause some genetic issues in cattle, as well as lower rates of gain and reduced pregnancy rates.
Davis said that most producers, if they don't have an endophyte-free pasture, have to deal with fescue in some way. One method is diluting the fescue by planting in different species of grass or legumes. Some producers also pull cattle off fescue-infested pastures and move them onto a warm-season pasture.
Another method is feeding cattle some type of supplement in order to dilute how much fescue they ingest. Such supplements can include dried distillers grains, corn gluten feed, commercially prepared feed or hay.
Dried distillers grains are a good choice for supplementing because of high protein and energy content, Davis said. If supplementing with DDG, producers would probably need to deliver it to cattle via some type of bunk.
Ideally, if feeding DDG once a day, Davis said recommendations are to feed 0.3% to 0.4% of body weight. Amounts much more than that can start causing problems with rumen, he said.
"Once you get above 0.3% to 0.4% of body weight, you start getting a more acidic pH and that makes an unfavorable rumen environment for fiber digestions," he said. "You want cattle to be as efficient as possible on pasture, and feeding DDG above that level can also cause pasture consumption and efficiency to decline."
Although DDG is a good choice for diluting fescue, when deciding what to supplement, David recommended having forage testing to ensure the supplementation chosen is effective.
"Look at your forage and see what is your limiting factor. Then devise a supplementation program based on the specific performance you want, depending on what you need," he said. "It may be if you just need energy, it may be more cost effective to just feed corn. Or if you have hay sitting around and it will meet your energy needs, then supplement with hay."
Davis said DDG also mixes well with low-quality forage, especially wet distillers grains, making it a good choice if readily available.
Since cost is such an important consideration, Davis added that proximity to ethanol plants, especially to lower-cost wet distillers, is also a consideration.
"Find what is most readily available and what you can buy at the best price. Then take that into account and develop a supplementation strategy based on those factors," he said. "If you're close to an ethanol plant, use DDG. If you have hay available at the right price, use that."
Davis said fescue has been less of problem in the past couple years, likely due to drought conditions in many areas.
"With the drought we had in recent years, it is possible we are losing some fescue stands," he said. "And if people are reseeding other types of grasses, that will help to dilute those pastures."
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.
-----------------------------------------------------------------------
IN THE NEWS
Grains Council Facilitates U.S. Trade Teams to Taiwan
Trade teams from the U.S. are working at building relations with key export markets, the U.S. Grains Council continues to facilitate those efforts, according to a news release from the council (http://bit.ly/…).
One example of the council's support of export trade was the three U.S. trade teams it recently facilitated to Taiwan. The visits were part of an agricultural trade mission from Indiana led by the state's Lt. Governor Sue Ellspermann, as well as a legislative leadership group from Washington State, and a legislative group representing Missouri, Kansas and North Dakota. While in Taiwan, the groups all met with government and industry officials and were educated about possible markets for U.S. products.
The Pacific Rim's economic growth makes it vital for U.S. delegations seeking to build relationships. The council has worked in Taiwan for approximately 40 years and has become a vital country to sustain demand for U.S. coarse grains and co-products such as dried distillers grains.
Because of the council's work, the Indiana team signed a letter of intent with the Taiwan Feed Industry Association to purchase between 560,000 and 700,000 metric tons of U.S. corn in 2015 and 2016.
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.
-----------------------------------------------------------------------
DTN WEEKLY DISTILLERS GRAIN SPOT PRICES
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 7/25/1900 | 7/18/1900 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $140 | $140 | $0 | |
| Modified | $70 | $70 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $135 | $150 | -$15 | |
| Indiana | Dry | $130 | $140 | -$10 | |
| Iowa | Dry | $120 | $130 | -$10 | |
| Michigan | Dry | $160 | $175 | -$15 | |
| Minnesota | Dry | $100 | $110 | -$10 | |
| North Dakota | Dry | $95 | $110 | -$15 | |
| New York | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $95 | $110 | -$15 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | $130 | $127 | $3 | |
| Modified | $44 | $44 | $0 | ||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $125 | $130 | -$5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $130 | $140 | -$10 | |
| Iowa | Dry | $115 | $120 | -$5 | |
| Michigan | Dry | $165 | $170 | -$5 | |
| Minnesota | Dry | $115 | $115 | $0 | |
| Missouri | Dry | $135 | $145 | -$10 | |
| Ohio | Dry | $135 | $145 | -$10 | |
| South Dakota | Dry | $105 | $110 | -$5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $140 | $145 | -$5 | |
| Wet | $45 | $50 | -$5 | ||
| Illinois | Dry | $160 | $165 | -$5 | |
| Nebraska | Dry | $140 | $145 | -$5 | |
| Wet | $45 | $50 | -$5 | ||
| Wisconsin | Dry | $155 | $165 | -$10 | |
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $130 | $145 | -$15 | |
| Indiana | Dry | $130 | $140 | -$10 | |
| Iowa | Dry | $105 | $115 | -$10 | |
| Michigan | Dry | $140 | $150 | -$10 | |
| Minnesota | Dry | $100 | $105 | -$5 | |
| Nebraska | Dry | $100 | $115 | -$15 | |
| New York | Dry | $150 | $160 | -$10 | |
| North Dakota | Dry | $100 | $105 | -$5 | |
| Ohio | Dry | $140 | $150 | -$10 | |
| South Dakota | Dry | $100 | $105 | -$5 | |
| Wisconsin | Dry | $120 | $128 | -$8 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $145 | $145 | $0 | |
| Iowa | Dry | $110 | $110 | $0 | |
| Minnesota | Dry | $105 | $105 | $0 | |
| Nebraska | Dry | $110 | $110 | $0 | |
| Ohio | Dry | $150 | $150 | $0 | |
| South Dakota | Dry | $100 | $100 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $190 | $195 | -$5 | |
| *Prices listed per ton. | |||||
| Weekly Average | $125 | $131 | -$6 | ||
| 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.
-----------------------------------------------------------------------
| VALUE OF DDG VS. CORN & SOYBEAN MEAL | ||||
| Settlement Price: | Quote Date | Bushel | Short Ton | |
| Corn | 7/24/2014 | $3.6150 | $129.11 | |
| Soybean Meal | 7/24/2014 | $395.30 | ||
| DDG Weekly Average Spot Price | $125.00 | |||
| DDG Value Relative to: | 7/25 | 7/18 | 7/11 | |
| Corn | 96.82% | 96.65% | 94.38% | |
| Soybean Meal | 31.62% | 34.43% | 31.08% | |
| Cost Per Unit of Protein: | ||||
| DDG | $5.00 | $5.24 | $5.40 | |
| Soybean Meal | $8.32 | $8.01 | $9.14 | |
| 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. | ||||
-----------------------------------------------------------------------
USDA MARKET NEWS/DISTILLER GRAINS PRICES
USDA WEEKLY DISTILLERS GRAINS SUMMARY (July 18, 2014)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 105.00-130.00 | 45.00-70.00 | 30.00-36.00 |
| Minnesota | 105.00-120.00 | 50.00 | 45.00 |
| Nebraska | 105.00-130.00 | 50.00-65.00 | 35.00-49.00 |
| South Dakota | 100.00-111.00 | 55.00-58.50 | 20.00-25.00 |
| Wisconsin | 125.00-160.00 | 55.00-80.00 | NQ |
| Eastern Corn Belt | 130.00-160.00 | 75.00-90.00 | NQ |
| Kansas | 138.00-145.00 | NQ | 49.00-60.00 |
| Northern Missouri | 145.00 | NQ | 45.00-55.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 160.00-173.00 | ||
| Pacific Northwest | 170.00-183.00 | ||
| California | 175.00-182.00 | ||
| Texas Border (metric ton) | 195.00-225.00 | ||
| Lethbridge AB | 165.00 | ||
| Chicago | 158.00-170.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Jul 22, 2014)
Distillers Dry Grains
Rail Delivered California Points 184.00-187.00 unch-up 3.00
Truck California Points 189.00 dn 1.00
PACIFIC NORTHWEST WEEKLY FEED (Tue Jul 22, 2014)
Offers for Distillers Dried Grains delivered in June by rail to feed mills in the Pacific Northwest were 5.00 to 15.00 higher, from 185.00-190.00. Offers for distillers dried grains trans-loaded onto trucks and delivered during June to Willamette Valley dairies were also 5.00 to 15.00 higher, from 203.00-205.00.
*All prices quoted per ton unless otherwise noted.
-----------------------------------------------------------------------
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.) |
| 6/27/14 | 94819 | 9736 | 1803 | 106358 | 4963513 |
| 7/04/14 | 92232 | 9470 | 1754 | 103456 | 4828097 |
| 7/11/14 | 93824 | 9634 | 1784 | 105242 | 4911430 |
| 7/18/14 | 95416 | 9797 | 1814 | 107027 | 4994763 |
*Information from 2010 Weekly U.S. Fuel Ethanol/Livestock Feed Production report (http://www.ethanolrfa.org/…)
-----------------------------------------------------------------------
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)
-----------------------------------------------------------------------
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).
-----------------------------------------------------------------------
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.
(AG/)
(PH/GH/ES/SKĂ‚Â)
Copyright 2014 DTN/The Progressive Farmer. All rights reserved.
