DTN Weekly Distillers Grains Update
NDSU Researchers Examine Pea Flour for DDGS Pelleting
OMAHA (DTN) -- Pea flour is likely an ideal additive to improve the quality of pellets made from dried distillers grains with solubles, as well as slightly improving the nutritional value, according to a North Dakota State University research project.
Vernon Anderson, animal scientist at North Dakota State University's Carrington Research Center, along with Kim Koch, feed production center manager at the Northern Crops Institute Feed Mill at NDSU, recently conducted research examining various levels of pea flour in DDGS pellets to see what level most improved the quality of the pellets.
Anderson said the idea for the study came about because of the abundance of co-products in North Dakota.
"We were looking for ways to better utilize all co-products," he said. "We found we can do that, and increase the bulk density, by pelleting."
Another motivation for the study was problems with flowability, an issue the industry had been working on for some time. In fact, some years ago, railroads had quit leasing cars to anyone shipping distillers grains, as the product tended to clump together in the bottom of the car, making unloading difficult. As some companies had taken to banging the cars with heavy equipment and damaging them in an attempt to dislodge the DDG, railroads began to require companies to purchase their own railcars.
Shipping pellets eliminates the problem with clumping in railcars and containers, he said.
Anderson and Koch also set out to increase bulk density and find a better way to pellet DDG. Because most dry DDG is relatively small fiber particles, pelleting DDG had not been 100% successful, Anderson said.
The researchers found that using pea flour not only adds some starch back into the product, but functions as a binder as well. Field peas and dry beans are widely used by feed manufacturers as pellet binder. Anderson said another facet of the study was to see if adding the pea flour would enhance pellet quality and the nutrient profiles of the DDG. Pea flour is the high-starch component from fractionation of field peas.
Anderson stressed that pelleting the DDG can be very positive, especially for producers whose cattle are on range and the DDG is often delivered on the ground. Since DDG is in such fine particles, a great deal of waste can occur.
Also, pellets will mix well with other ingredients in high forage or grain rations.
For the study, researchers tested three mixtures:
-- 150 pounds of pea flour (15%) and 850 pounds of dried distillers grains with solubles
-- 250 pounds of pea flour (25%) and 750 pounds of DDGS.
-- 350 pounds of pea flour (35%) and 650 pounds of DDGS.
The pellets were manufactured using a California Pellet Mill Hy-flo press, a standard commercial pelleting press that uses steam and pressure to condition the mix before pressing the mix through the 1/4-inch pellet die.
Researchers evaluated each of the mixtures using the pellet durability index (PDI), in which 90% is considered satisfactory for durability. The PDI is determined by "tumbling" a known weight of pellets in a rotating drum for 10 minutes after which the percent of fines were compared with the initial weight to arrive at the PDI. The results were:
-- 15% pea flour PDI was 87.4%.
-- 25% pea flour PDI was 89.7%.
-- 35% pea flour PDI was 94%.
Since the 15% mixtures was below the 90% levels and the 35% was substantially above, Anderson said that researchers determined that 26% or 27% may likely be the optimum level for commercial markets, assuming that a linear relationship exists between the level of pea flour and the PDI.
Besides the benefits of reduced waste and increased flowability, Anderson said adding the pea flour resulted in a slight increase in nutrient value in the pellets.
"Pea flour has a little more energy than distillers, so the pelleted product has a bit more nutritional value," he said. "The energy was a couple percentage points higher.
Anderson said that research still needs to be done to evaluate whether there is any significant improvement in animal performance with a pelleted DDGS product, but said that NDSU has no concrete plans for such research at the current time.
In the end, Anderson said, the economics of using pea flour as a pellet binder are still to be determined.
"The fact that we can improve pellet quality is positive," he said. "If we could pellet DDG at a competitive cost, especially to ship internationally, this process may have value."
The pelleted product would likely be beneficial for export markets, Anderson said. Most importantly, the product could be shipped with improved bulk density, which would improve end use. Also, the pelleted product may have broader end use such as supplementing grazing animals, limit feeding, or use at higher-than-current recommendations for non-ruminant species.
Anderson added that the pelleted DDGS could fit in swine or poultry diets, as pea flour adds additional energy poultry can use, replacing some of the fiber in DDG. If more pea flour is added, it may be possible to use higher inclusion rates of DDGS in rations.
More detail about Anderson and Koch's project can be found in the 2014 North Dakota Beef Report (http://bit.ly/…).
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com
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IN THE NEWS
Coming Feed Year Should Bring Opportunities for Rations
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The coming feeding year should be one of great opportunities for cattle producers considering the low prices of corn, distillers grains with solubles (DGS) and other proteins, according to an article (http://bit.ly/…) in Tri-State Neighbor written by Alfredo DiCostanzo, member of the University of Minnesota Beef Team
In recent years, the appeal of U.S. DGS to export markets and higher feed prices in the U.S. had reduced DGS inclusion in diets of feedlot cattle. With the 2014 harvest, corn grain prices are expected to remain in the $3 to $3.50/bu range and prices of DGS are currently on a downward slide as well. In fact, DGS prices reached the lowest point in more than five years last week, propelled by a combination of lagging exports, excess supply and falling prices of competing ingredients.
In the coming year, DiCostanzo predicts that the low prices of corn, DGS and soybean meal will help producers optimize cattle diets, as well as enhancing diet integrity and palatability.
DiCostanzo said he expects corn use to be maximized, and DGS inclusion rates to reflect optimum concentrations for protein contribution.
In the article, he states, "Current feed price conditions in the Upper Midwest provide ample opportunity for diet formulation creativity as long as feed supply is preserved and not wasted during storage, mixing or delivery."
Corn Board Members Return From Trade Missions
The Nebraska Corn Board recently sent members to China, Japan and Korea on trade missions to promote U.S. meat, corn and related products, according to an article on the board's website (http://bit.ly/…).
One team visited Japan and China to stress the safe farming practices and commitment to high-quality to buyers in those countries. The team gave presentations on U.S. farm practices in Tokyo which was attended by more than 600 meat buyers from the Japanese food industry.
The team also met with Chinese government and industry officials to continue discussions about corn, distillers grains and biotechnology. The discussions were aimed at gaining relationship with end users in China to open up markets for U.S. ag products, in light of on-going trade disruptions with China over its ban on corn and distillers grains containing the MIR 162 biotech trait.
Other NCB members visited Japan and Korea, traveling with a mission team from the U.S. Grains Council to provide insights to buyers and end users on the condition of the current U.S. corn crop condition and the outlook for global supply and demand.
The team reported that the Japanese and Korean buyers and end users were pleased about the ample, high-quality corn crop in the U.S. that will be available for export. A seminar was also held in Japan with more than 160 end users and importers to help build relationships with the U.S. and to promote the U.S. as a reliable, long-term supplier of good quality corn and related products.
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.
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DTN WEEKLY DDG SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 10/17/2014 | 10/10/2014 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $120 | $120 | $0 | |
| Modified | $65 | $65 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $85 | $80 | $5 | |
| Indiana | Dry | $90 | $90 | $0 | |
| Iowa | Dry | $95 | $90 | $5 | |
| Michigan | Dry | $105 | $105 | $0 | |
| Minnesota | Dry | $85 | $85 | $0 | |
| North Dakota | Dry | $95 | $95 | $0 | |
| New York | Dry | $165 | $120 | $45 | |
| South Dakota | Dry | $85 | $85 | $0 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | $85 | $85 | $0 | |
| Modified | $35 | $35 | $0 | ||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $105 | $105 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $90 | $90 | $0 | |
| Iowa | Dry | $100 | $100 | $0 | |
| Michigan | Dry | $110 | $120 | -$10 | |
| Minnesota | Dry | $95 | $95 | $0 | |
| Missouri | Dry | $95 | $110 | -$15 | |
| Ohio | Dry | $95 | $95 | $0 | |
| South Dakota | Dry | $95 | $95 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $110 | $110 | $0 | |
| Wet | $35 | $30 | $5 | ||
| Illinois | Dry | $98 | $98 | $0 | |
| Nebraska | Dry | $110 | $110 | $0 | |
| Wet | $35 | $30 | $5 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $100 | $100 | $0 | |
| Indiana | Dry | $100 | $100 | $0 | |
| Iowa | Dry | $95 | $95 | $0 | |
| Michigan | Dry | $100 | $100 | $0 | |
| Minnesota | Dry | $85 | $85 | $0 | |
| Nebraska | Dry | $100 | $100 | $0 | |
| New York | Dry | $165 | $165 | $0 | |
| North Dakota | Dry | $100 | $95 | $5 | |
| Ohio | Dry | $100 | $100 | $0 | |
| South Dakota | Dry | $90 | $90 | $0 | |
| Wisconsin | Dry | $90 | $95 | -$5 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $90 | $90 | $0 | |
| Iowa | Dry | $105 | $105 | $0 | |
| Minnesota | Dry | $95 | $95 | $0 | |
| Nebraska | Dry | $110 | $110 | $0 | |
| Ohio | Dry | $100 | $100 | $0 | |
| South Dakota | Dry | $95 | $95 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $175 | $173 | $2 | |
| *Prices listed per ton. | |||||
| Weekly Average | $97 | $98 | -$1 | ||
| 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 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 | 10/16/2014 | $3.5225 | $125.80 | |
| Soybean Meal | 10/16/2014 | $334.60 | ||
| DDG Weekly Average Spot Price | $97.00 | |||
| DDG Value Relative to: | 10/17 | 10/10 | 10/3 | |
| Corn | 77.10% | 79.59% | 88.49% | |
| Soybean Meal | 28.99% | 29.43% | 33.04% | |
| Cost Per Unit of Protein: | ||||
| DDG | $3.88 | $3.92 | $4.08 | |
| Soybean Meal | $7.04 | $7.01 | $6.50 | |
| 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 (Oct 10, 2014)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 85.00-116.00 | 35.00-55.00 | 23.00-32.00 |
| Minnesota | 90.00-105.00 | 45.00 | 35.00 |
| Nebraska | 95.00-115.00 | 40.00-58.00 | 35.00-44.00 |
| South Dakota | 90.00-99.00 | 45.00-52.00 | 25.00-28.00 |
| Wisconsin | 95.00-100.00 | 42.00-45.00 | NQ |
| Eastern Corn Belt | 80.00-115.00 | 65.00-67.00 | NQ |
| Kansas | 115.00-125.00 | NQ | 40.00-50.00 |
| Northern Missouri | 105.00-120.00 | NQ | 34.00-40.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 138.00-155.00 | ||
| Pacific Northwest | 155.00-169.00 | ||
| California | 150.00-166.00 | ||
| Texas Border (metric ton) | 180.00-205.00 | ||
| Lethbridge AB | 135.00 | ||
| Chicago | 85.00-100.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Oct 14, 2014)
Distillers Dry Grains
Rail to California Points 169.00-180.00 dn 1.00-up 10.00
FOB Truck to California Points 170.00-190.00 dn 10.00-up 5.00
PACIFIC NORTHWEST WEEKLY FEED (Tue Oct 14, 2014)
Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were steady to 4.00 higher, from 173.00-185.00. Offers for distillers dried grains trans-loaded onto trucks and delivered during September to Willamette Valley dairies were also steady to 4.00 higher, from 191.00-200.00.
*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.) |
| 9/12/14 | 92003 | 9511 | 1761 | 103275 | 5477103 |
| 9/19/14 | 87852 | 9082 | 1682 | 98616 | 5230016 |
| 9/26/14 | 87062 | 9000 | 1667 | 97729 | 5182952 |
| 10/03/14 | 89038 | 9205 | 1705 | 99947 | 5300612 |
*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) 364-2183-1527, or e-mail cheryl.anderson@dtn.com.
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