DTN Weekly Distillers Grains Update
Researchers Use Calcium Oxide to Reduce Acidity in DDG
DAVENPORT, Neb. (DTN) -- Adding calcium oxide to distillers grains in cattle rations can reduce acidity and increase digestibility, resulting in better performance, according to recent research.
Jon Schoonmaker, assistant professor of Animal Sciences at Purdue University, recently published results from a collaborative project in which researchers from three universities examined utilizing calcium oxide (CaO) to increase rumen pH and increase inclusion rates of distillers grains.
Schoonmaker said he came up with the idea for the study three years ago when the popular method of dealing with corn stover was the time-intensive method of treating it with an alkali such as calcium oxide, then storing it in a bag for two weeks. At the same time, a former adviser at Ohio State University (Dr. Steve Loerch) and colleagues at the University of Illinois (Dr. Tara Felix) were working on pre-treating distillers grains to reduce its acidity.
After several discussions, the three decided to try adding CaO to distillers grains or the overall ration as a way to increase rumen pH instead of pre-treating corn stover. So, Schoonmaker, along with colleagues from OSU and University of Illinois, did a set of three studies in order to examine whether neutralizing acidity might be a way to relieve the metabolic stress of excess acid, as well as providing a way to increase inclusion rates of DDG in cattle diets.
Distillers grains can be high in acidity because of the sulfuric acid used in ethanol production to control starch fermentation. Also in ethanol production, the starch is removed, but all other nutrients are concentrated three times. This means the sulfur content is also concentrated.
Schoonmaker explained that low rumen pH can inhibit fiber digestibility in cattle, so cattle can't absorb calories and performance is reduced.
Another problem is that the acidity gets into the bloodstream and the animal has to deal with excess acid, excreting more acid in the urine and using more metabolic mechanisms to neutralize it, he said.
He added that in the three studies, researchers noticed calcium oxide increased urine pH and also reduced urine volume in cattle that were fed up to 60% DDGS on a DM basis.
"A complaint we have heard a lot in high distillers diets is that cattle urinate more," he said. "Pens are wetter as cattle try to deal with the excess acidity and more urine is needed to flush it out."
The studies used finishing cattle, starting out at about 750 pounds and finishing at about 1,350 pounds, though the CaO could be used for either growing or finishing cattle.
Researchers saw about a 5% increase in gain with cattle consuming diets with CaO added in. Although their intake sometimes drops slightly or remains the same, Schoonmaker said there was a marked improvement in efficiency.
However, once distillers grains are included at rates of more than 30%-40%, there may be some negative effects on performance; adding CaO is a way to increase inclusion of DDG in diets without negatively affecting performance. Since distillers grains are typically cheaper than corn, this will help the cattle producers' bottom line.
Schoonmaker said although he hasn't had an economist run the numbers, he believes the gains in performance outweighed the cost of the CaO. Calcium oxide, which is often produced from limestone, runs between 25 to 50 cents a pound, while limestone runs about 5 cents a pound.
He said some producers may not be sure of how to source calcium oxide, which is also commonly called quicklime. For the studies, researchers got their calcium oxide from Mississippi Lime, a company based in St. Louis that markets about 90% of the CaO in the U.S. and sells it through various distributors. Alternatively, producers can use calcium hydroxide (Ca(OH)2), or hydrated lime, to increase the pH of DDG diets.
Calcium oxide does require some safety precautions, as it can irritate or cause burns on skin and can irritate nasal passages if inhaled. Typically, anyone handling CaO needs to wear gloves and masks.
Schoonmaker added that the U.S. Food and Drug Administration deemed CaO to be safe in 1975, and said it is completely harmless if included in diets at low concentrations.
Using CaO works best if simply added to the rations, Schoonmaker said. During the studies, the CaO was added in with the distillers grains, silage and corn into a mixing wagon at a rate of about 1% of the diet on a dry matter basis.
He added that there has been some research done on pretreating wet distillers grains; however, it was found that although pretreating increases the pH, the wet distillers goes bad very quickly.
One other outcome observed by University of Illinois researchers was that adding CaO can change the cattle's pattern of feed intake. Instead of eating a lot right away, then coming back to nibble, cattle simply ate at a slower rate all day long.
Overall, the studies have shown that adding CaO to distillers grains allows cattle to get more nutrition out of their food, allowing producers to get better performance from cattle without the intensive labor required in pretreating corn stalks.
"Using calcium oxide allows you to include corn stover in diets and still get the gains you are used to with corn silage," he said. "It can also help decrease some of the corn used, which is the most expensive commodity in the diet."
FUTURE STUDIES
Schoonmaker said only one of the three studies has been published so far. Overall, the researchers have looked at different forage combinations, and different amount of distillers grains.
In the future, he said he would like to look at other bases and buffers that might increase pH or prevent a drop in pH, as well as examining calcium oxide versus calcium hydroxide to see what is the most effective compound to use.
The paper of Schoonmaker's team's work was published in the Journal of Animal Science. It is available online at http://bit.ly/….
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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IN THE NEWS
Rumors: China May Lift DDGS Restrictions
The buzz from the export trade last week was the China may possibly lift restrictions on imports of U.S.-produced dried distillers grains with solubles, according to the Sunday Outlook in Hoosier Ag Today by Arlan Suderman (http://bit.ly/…).
Trade with China took a serious dip in mid-December 2013 when China began rejecting shipments of U.S. DDGS because of the presence of MIR 162, a GMO variety unapproved by China. Prices of DDG began to plummet, but fell even more in June when China announced it would stop issuing permits for imports of DDGS. The latest demand in July was that China required any DDGS arriving in Chinese ports to be accompanied by an official letter of certification that it contains no trace of MIR 162. The U.S. did not comply as no such certification exists.
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The rumors of Chinese feed mills once again purchasing U.S. DDGS, along with tighter soymeal supplies, have caused a rally in DDG prices in recent weeks. If the rumors were true, the resurgence in trade with China could boost ethanol grind margins, as well as tightening the protein market, Suderman said.
Most U.S. DDG exporters have found other homes for the product formerly destined for China. Although resurgence in trade with China would be beneficial for the protein market, it would increase ethanol production, since plants are already operating near capacity, he said.
Grains Council Educates Japanese DDGS Buyers
U.S. Grains Council staff recently traveled to Japan to host a series of seminars and roundtable discussion for Japanese buyers of dried distillers grains with solubles, according to an article on the Council's website (http://bit.ly/…).
The purpose of the sessions was to educate DDGS end users on how to properly utilize low-oil DDGS in livestock rations. Because some concerns about the nutritional value of low-oil DDGS existed among some Japanese dairy producers, Alvaro Garcia, director of South Dakota State University's agriculture and natural resources program, spoke to a number of small groups across Japan.
Garcia pointed out to those in attendance that low-oil DDGS does have lower energy content; however, it still is a good source of energy for dairy cattle. He stressed that in his research on feeding low-oil DDGS to lactating dairy cattle, the low-oil DDGS reduced unfavorable fatty acid composition in milk.
Garcia also addressed concerns about nutrient variability and said that U.S. DDGS has become a much more consistent product in the past 10 years.
By hosting the seminars and discussions, the Council hopes to increase inclusion rates of DDGS in Japan's feed industry, increase the country's demand in 2015, and will continue to promote low-oil DDGS to Japan's dairy sector.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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DTN WEEKLY DDG SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 12/12/2014 | 12/5/2014 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $140 | $130 | $10 | |
| Modified | $75 | $70 | $5 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $160 | $145 | $15 | |
| Indiana | Dry | $155 | $130 | $25 | |
| Iowa | Dry | $130 | $125 | $5 | |
| Michigan | Dry | $140 | $130 | $10 | |
| Minnesota | Dry | $120 | $115 | $5 | |
| North Dakota | Dry | $125 | $120 | $5 | |
| New York | Dry | $160 | $155 | $5 | |
| South Dakota | Dry | $125 | $112 | $13 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | NA | NA | ||
| Modified | NA | NA | |||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $150 | $135 | $15 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $140 | $125 | $15 | |
| Iowa | Dry | $120 | $115 | $5 | |
| Michigan | Dry | $150 | $120 | $30 | |
| Minnesota | Dry | $115 | $105 | $10 | |
| Missouri | Dry | $140 | $130 | $10 | |
| Ohio | Dry | $140 | $130 | $10 | |
| South Dakota | Dry | $120 | $120 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $135 | $130 | $5 | |
| Wet | $55 | $45 | $10 | ||
| Illinois | Dry | $150 | $135 | $15 | |
| Nebraska | Dry | $135 | $130 | $5 | |
| Wet | $55 | $45 | $10 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $145 | $135 | $10 | |
| Indiana | Dry | $145 | $125 | $20 | |
| Iowa | Dry | $145 | $125 | $20 | |
| Michigan | Dry | $145 | $125 | $20 | |
| Minnesota | Dry | $140 | $115 | $25 | |
| Nebraska | Dry | $150 | $130 | $20 | |
| New York | Dry | $195 | $175 | $20 | |
| North Dakota | Dry | $150 | $130 | $20 | |
| Ohio | Dry | $145 | $125 | $20 | |
| South Dakota | Dry | $145 | $115 | $30 | |
| Wisconsin | Dry | $148 | $120 | $28 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | NA | $125 | ||
| Iowa | Dry | NA | $120 | ||
| Minnesota | Dry | NA | $115 | ||
| Nebraska | Dry | NA | $130 | ||
| Ohio | Dry | NA | $125 | ||
| South Dakota | Dry | NA | $115 | ||
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $235 | $215 | $20 | |
| *Prices listed per ton. | |||||
| Weekly Average | $140 | $124 | $16 | ||
| 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 | 12/11/2014 | $3.9000 | $139.29 | |
| Soybean Meal | 12/11/2014 | $406.10 | ||
| DDG Weekly Average Spot Price | $140.00 | |||
| DDG Value Relative to: | 11/28 | 11/21 | 11/14 | |
| Corn | 100.51% | 84.02% | 80.47% | |
| Soybean Meal | 34.47% | 30.20% | 28.21% | |
| Cost Per Unit of Protein: | ||||
| DDG | $5.60 | $4.48 | $4.44 | |
| Soybean Meal | $8.55 | $7.81 | $8.28 | |
| 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 (Dec 5, 2014)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 105.00-130.00 | 46.00-60.00 | 28.00-38.00 |
| Minnesota | 104.00-110.00 | 45.00 | 40.00 |
| Nebraska | 115.00-135.00 | 58.00-71.00 | 40.00-51.00 |
| South Dakota | 100.00-109.50 | 50.00-61.00 | 32.00-35.00 |
| Wisconsin | 105.00-120.00 | 45.00-55.00 | NQ |
| Eastern Corn Belt | 115.00-140.00 | 50.00-53.00 | NQ |
| Kansas | 135.00-150.00 | NQ | 50.00-57.00 |
| Northern Missouri | 125.00-135.00 | NQ | 40.00-45.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 185.00-200.00 | ||
| Pacific Northwest | 215.00-220.00 | ||
| California | 205.00-225.00 | ||
| Texas Border (metric ton) | 220.00-235.00 | ||
| Lethbridge AB | 200.00-210.00 | ||
| Chicago | 143.00-160.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Nov 18, 2014) *Current info NA from USDA
Distillers Dry Grains
Rail to California Points 197.00-207.00 up 12.00-unch
FOB Truck to California Points 205.00-218.00 up 10.00-8.00
PACIFIC NORTHWEST WEEKLY FEED (Tue Nov 18, 2014) * Current info NA from USDA
Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were steady to 8.00 higher from 203.00-208.00. Offers for distillers dried grains trans-loaded onto trucks and delivered during September to Willamette Valley dairies were also steady to 8.00 higher from 221.00-223.00.
*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.) |
| 11/14/14 | 95857 | 9910 | 1835 | 107602 | 5706542 |
| 11/21/14 | 97043 | 10032 | 1858 | 108933 | 5777138 |
| 11/28/14 | 95066 | 9828 | 1820 | 106714 | 5659477 |
| 12/05/14 | 97636 | 10093 | 1869 | 109598 | 5812436 |
*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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