DTN Weekly Distillers Grains Update
Webinar Planned for DDGS in Aquaculture
With aquaculture becoming a quickly growing industry in the U.S., a group of organizations have teamed up to present a webinar on the use of dried distillers grains with solubles in fish diets.
Kurt Rosentrater, assistant professor at Iowa State University and executive director of the Distillers Grains Technology Council, has done a great deal of research in using DDGS in aquaculture diets. Rosentrater was asked to join the National Corn-to-Ethanol Research Center (NCERC) at Southern Illinois University Edwardsville and Southern Illinois University Carbondale in presenting the webinar.
Previous research has found that DDGS is a proven ingredient for fish feeds, although it cannot be fed alone, but rather is part of a balanced diet. Rosentrater has completed feeding trials using DDGS successfully for species such as catfish, tilapia, rainbow trout, yellow perch, etc.
"DDGS can be part of a balanced aquaculture diet, and feeding trials have been looking at finding that balance," Rosentrater said. "Typically, 10% to 20% DDGS works really well in aquaculture feeds for a variety of species."
Replacing costly fish meal with DDGS is attractive for the aquaculture industry, first because of the huge difference in cost. Fish meal is a popular ingredient in aquaculture diets, and is also used to a lesser degree in rations for livestock. While fishmeal can run between $1,600 and $2,000 per ton, DDGS is currently selling for about $97 per ton.
Another reason for the drive to replace fishmeal is the trend to find sustainable food sources.
Rosentrater explained, "Fish capture globally has plateaued in the last decade. The fishing industry is just not able to catch as much, even though demand is increasing."
The cost of fishmeal and declining fish capture are behind the search to reduce fish meal in aquaculture diets and replace it with more sustainable ingredients, such as corn-based or soy-based ingredients, he said.
That quest is even more important because of the growth in the aquaculture industry. Most of the fish in the U.S. is imported from Far Eastern countries such as China, Vietnam and Indonesia. However, regulatory surveillance of those operations is not comparable to that in the U.S.
"When we talk about a sustainable, healthy food supply, that's something we can do here in the U.S.," Rosentrater said. "We control what goes into the diet, how is the fish raised, and we can implement standards to produce healthy fish which will lead to healthy food for humans."
More and more small aquaculture operations are popping up in the Midwest, he said, and DDGS can help meet the demand for sustainable protein sources for these feeds.
DDGS IN AQUACULTURE WEBINAR
The webinar, titled "'Reel' Opportunities for Fishmeal Replacement," will be held on Nov. 4, 2014, at 1 p.m. CST. Those interested in participating should email Courtney Breckenridge at cbreckenridge@ethanolresearch.com or call her at 618-659-6737, ext. 230, to receive login information. There is no cost for the webinar.
Rosentrater said the webinar should last between 60 to 90 minutes and added that there should be a period for participants to ask any question they may have.
Rosentrater will be joined by Jesse Trushenski, associate professor at Southern Illinois University Carbondale Center for Fisheries, Aquaculture, and Aquatic Sciences; Sabrina Trupia, NCERC Research Director; and Parisa Fallahi, postdoctoral fellow at NCERC at SIUE.
Topics that will be discussed in the webinar include: use of DDGS as a fishmeal replacer, opportunities for types of DDGS as a fishmeal substitute, properties of extruded DDGS-based fish feed, manufacturing DDGS-based feeds with an approach to commercialization. Rosentrater said the webinar will also review historic information about DDGS use in fish diets, newer types of fractionated DDGS products and how they can be used.
"We will be trying to give a full picture -- what we do know, where we have been and where we are going," he said. "We want to get aquaculture feed people to the table so they understand that DDGS is an ingredient they can use."
Fallahi said, "We are excited to share past research findings and discuss the exciting opportunities for DDGS that exist in the aquaculture market, in terms of both future research and the pathway to commercialization.
"The best way to fully realize this emerging market is through research collaboration and involving industry partners early in the process. We believe this webinar is a great way to spark new discussions and generate interest."
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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IN THE NEWS
Global Demand for DDG "Murky," Says RFA's Cooper
Export demand for U.S.-produced dried distillers grains is somewhat "murky" due largely to trade barriers and interruptions in global trade of DDG, according to an article by Domestic Fuel (http://bit.ly/…).
Geoff Cooper, senior vice president of the Renewable Fuels Association, spoke to those attending the 2014 Export Exchange Oct. 22 in Seattle, sponsored by RFA and the U.S. Grains Council.
Cooper said that the U.S. ethanol industry is producing ample supplies of DDG; the U.S. is expected to produce between 36 million and 37 million tons of DDG in the current marketing year.
The large trade disruption, Cooper said, is the demands by China that all shipments of DDG be accompanied by an official certification that they are free of the MIR 162 biotech trait.
"That kind of certification is not possible," Cooper said to conference attendees. "So, we expect exports to China to be significantly curtailed or even halted until this situation is resolved."
Such a halt in trade is serious, since last year China purchased half of all the U.S. DDG exports. Although it doesn't make up for trade lost with China, other countries such as Mexico, Egypt, Turkey and other parts of Asia have increased their imports of U.S. DDG, Cooper said.
Grains Council Holds DDGS Webinar for Korean Poultry Industry
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To boost demand for U.S. dried distillers grains with solubles by the Korean poultry industry, the U.S. Grains Council recently held a webinar Oct.8 to educate 19 Korean nutritionists and feed formulators about several DDGS feeding trials conduct by the University of Nebraska-Lincoln, according to an article on the council's website (http://bit.ly/…).
Although nearly 80% of mixed feed manufacturers for livestock and poultry in Korea have tried DDGS, none have used it continuously due to a lack of experience with its nutritional value. Since nutritionists and layer feed manufacturers in Korea have recently begun to explore the feasibility of increasing DDGS inclusion rates in poultry diets, the Council held the webinar.
UNL Professor Sheila E. Purdum outlined procedures for trials that used multiple enzymes in feed rations for laying hens, two trials for broiler hens, a low-oil DDGS feeding trial for layers, and a DDGS feeding trial using a DDGS pelleted feed.
Purdum recommended both regular and low-oil DDGS as an economical feedstuff for broiler and layer rations, and told those viewing the webinar that enzymes can enhance nutrient utilizations in diets with DDGS, as well as reducing nutrient output in manure.
Although most feed millers use DDGS in inclusion rates of 10% to 15% in layer diets, Purdum recommended it can safely be added as high as 30%, while still maintaining performance.
The council plans to continue to supply the Korean livestock industry with current technical information regarding U.S. DDGS, including low-oil products.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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DTN WEEKLY DDG SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 10/24/2014 | 10/17/2014 | 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 | $90 | $85 | $5 | |
| Indiana | Dry | $90 | $90 | $0 | |
| Iowa | Dry | $95 | $95 | $0 | |
| Michigan | Dry | $110 | $105 | $5 | |
| Minnesota | Dry | $90 | $85 | $5 | |
| North Dakota | Dry | $90 | $95 | -$5 | |
| New York | Dry | $165 | $165 | $0 | |
| South Dakota | Dry | $85 | $85 | $0 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | $90 | $85 | $5 | |
| Modified | $37 | $35 | $2 | ||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $110 | $105 | $5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $90 | $90 | $0 | |
| Iowa | Dry | $95 | $100 | -$5 | |
| Michigan | Dry | $105 | $110 | -$5 | |
| Minnesota | Dry | $95 | $95 | $0 | |
| Missouri | Dry | $95 | $95 | $0 | |
| 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 | $35 | $0 | ||
| Illinois | Dry | $105 | $98 | $7 | |
| Nebraska | Dry | $110 | $110 | $0 | |
| Wet | $35 | $35 | $0 | ||
| 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 | $90 | $85 | $5 | |
| Nebraska | Dry | $105 | $100 | $5 | |
| New York | Dry | $165 | $165 | $0 | |
| North Dakota | Dry | $105 | $100 | $5 | |
| Ohio | Dry | $105 | $100 | $5 | |
| South Dakota | Dry | $95 | $90 | $5 | |
| Wisconsin | Dry | $90 | $90 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $100 | $90 | $10 | |
| Iowa | Dry | $100 | $105 | -$5 | |
| Minnesota | Dry | $95 | $95 | $0 | |
| Nebraska | Dry | $100 | $110 | -$10 | |
| Ohio | Dry | $100 | $100 | $0 | |
| South Dakota | Dry | $95 | $95 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $180 | $175 | $5 | |
| *Prices listed per ton. | |||||
| Weekly Average | $98 | $97 | $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 | 10/23/2014 | $3.5975 | $128.48 | |
| Soybean Meal | 10/23/2014 | $352.40 | ||
| DDG Weekly Average Spot Price | $98.00 | |||
| DDG Value Relative to: | 10/24 | 10/17 | 10/10 | |
| Corn | 76.28% | 77.10% | 79.59% | |
| Soybean Meal | 27.81% | 28.99% | 29.43% | |
| Cost Per Unit of Protein: | ||||
| DDG | $3.92 | $3.88 | $3.92 | |
| Soybean Meal | $7.42 | $7.04 | $7.01 | |
| 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 17, 2014)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 85.00-118.00 | 35.00-55.00 | 23.00-32.00 |
| Minnesota | 90.00-100.00 | 45.00 | 35.00 |
| Nebraska | 100.00-123.50 | 45.00-58.00 | 35.00-45.00 |
| South Dakota | 87.00-103.00 | 45.00-52.00 | 25.00-28.00 |
| Wisconsin | 90.00-100.00 | 42.00-45.00 | NQ |
| Eastern Corn Belt | 83.00-115.00 | 65.00-67.00 | NQ |
| Kansas | 115.00-135.00 | NQ | 40.00-50.00 |
| Northern Missouri | 100.00-118.00 | NQ | 34.00-40.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 139.00-155.00 | ||
| Pacific Northwest | 160.00-168.00 | ||
| California | 163.00-168.00 | ||
| Texas Border (metric ton) | 175.00-195.00 | ||
| 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 21, 2014)
Distillers Dry Grains
Rail to California Points 168.00-177.00 dn 1.00-3.00
FOB Truck to California Points 178.00-184.00 up 8.00-dn 6.00
PACIFIC NORTHWEST WEEKLY FEED (Tue Oct 21, 2014)
Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were steady, 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, 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.) |
| 9/26/14 | 87062 | 9000 | 1667 | 97729 | 5182952 |
| 10/03/14 | 89038 | 9205 | 1705 | 99947 | 5300612 |
| 10/10/14 | 87457 | 9041 | 1674 | 98173 | 5206484 |
| 10/17/14 | 88544 | 9154 | 1695 | 99393 | 5271197 |
*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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