DTN Weekly Distillers Grains Update
Minnesota Corn Growers Publish 2015 Research Summary
A new summary of all research projects funded through the state corn check-off was recently published by the Minnesota Corn Growers Association, including research on dried distillers grains.
The 2015 Research Summary contains all completed research projects funded since 2008, according to Adam Czech, public relations manager for the Minnesota Corn Growers Association.
Minnesota's corn farmers support $4 million in third-party research projects annually. The research projects contained in the summary were all conducted through third-party institutions such as the University of Minnesota and other accredited universities. The majority of the funding for the projects came from Minnesota's corn check-off, a voluntary, 1-cent fee paid by corn farmers for every bushel of corn sold.
The summary was compiled in order to gather all research projects in one publication and make the information as easy to read as possible, Czech said.
"The check-off helps fund so much great research conducted in Minnesota through the University of Minnesota and other great partners," he said. "Sometimes, communicating the results of such research can be a challenge, so we wanted to take all projects in one publication."
A hard copy of the summary was also mailed to every farmer in Minnesota who farms 100 acres of corn or more.
"We wanted corn farmers to have a copy of what their check-off investments have been doing, so they can use that research to better their own operations," Czech said.
The research projects contained in the summary cover a wide range of topics important to corn farmers and are divided into six categories: agronomy and plant genetics, corn utilization, livestock, fuels and emissions, soil fertility and water quality.
The publication contains summaries of 16 research projects on the use of DDG, including:
-- Increasing the Usage Level of Corn and Distillers Grains in Market Turkey Diets Through the Use of Supplemental Amino Acids (2013)-Sally Noll, University of Minnesota.
-- Energy Utilization of Oil Extracted-Dried Distillers Grains with Solubles (OE-DDGS) in Turkeys (2012)-Sally Noll, Gerald Shurson and Brian Kerr, University of Minnesota and United States Department of Agriculture-Agricultural Research Service (USDA-ARS).
-- Vitamin E and Selenium Status of Pigs Fed DDGS Diets and Relationship to Mulberry Heart Disease (2011)-Gerald Shurson, University of Minnesota.
-- Investigation of Relationships of Chemical Composition, Viscosity, and Metabolizable Energy of Distillers Grains for Poultry (2011)-Sally Noll and Alexa Copeland, University of Minnesota.
-- Fate and Biological Activity of Antibiotics used in Ethanol Production (2010)-Gerald Shurson, Alfredo DiCostanzo, Devan Paulus-Compart, Angela Carlson, Grant Crawford, Ryan Fink and Francisco Diez-Gonzalez, University of Minnesota.
-- Determination of Potential Human Health Benefits from Diets Containing Corn Distiller's Co-products (2010)-G. C. Shurson, P. E. Urriola, R. Shin, X. Zhang, C. M. Gallaher and D.D. Gallaher, University of Minnesota and Agricultural Utilization Research Institute (AURI).
The 2015 Research Summary can be accessed online at www.mncorn.org, then by scrolling down and clicking on "2015 Research Summary." The summary can be read online or can be downloaded at no charge.
Czech added that anyone wanting a hard copy of the summary can contact the Minnesota Corn Growers Association office at (952) 233-0333 and one will be mailed out to them.
Distributing the information is all about communication, Czech said.
"There is so much great research Minnesota corn growers are supporting," he said, "but sometimes research can be hard to understand with all the jargon. We wanted to put all the information in one spot and have it written in a way that is easy to digest, whether you are a researcher, farmer or non-farmer."
Cheryl Anderson can be reached at cheryl.anderson@dtn.com
-----------------------------------------------------------------------
IN THE NEWS
Economists Look at DDGS role in Ethanol Profitability
A recent FarmDoc Daily post examined the price risk of dried distillers grains with solubles on the profitability of ethanol plants.
The article, "Ethanol Production Profits: the Risk from Lower Prices of Distillers Grains," by University of Illinois economists Scott Irwin and Darrel Good (http://bit.ly/…), looked at the history of ethanol production. It focused on high profitability in 2014 and how falling crude oil, gasoline and ethanol prices are driven by recent profit declines.
However, the article also stressed the role distillers dried grains with solubles play in offsetting ethanol price declines and examined the risk of declining DDGS prices to ethanol profits in coming months.
Prices of DDGS have varied, but tend to mirror the price of corn, so that higher profits from DDGS are associated with higher ethanol production costs. If the ratio of the price of DDGS to the price of corn is high, DDGS contributes more to profits and vice versa. So a decline in DDGS prices would result in a decline in net returns, if all other prices are unchanged.
The authors suggest the possibility of a risk for falling DDGS prices in coming months, even with a decline in corn/soybean meal prices. Such a decline would result in decreased profits for plants unless adjustments are made in prices of other parts of production returns and/or costs. Some plants could experiences profits below the cost of production for at least a time.
The article suggests that the good news is that domestic and export ethanol demand will be strong enough to prevent a large reduction in production. Therefore, it will be necessary to increase ethanol prices to motivate sufficient production, even if DDGS prices fall and no prices adjustments for corn occur.
Grains Council Targets Caribbean Markets
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
The U.S. Grains Council recently sent a team to the Caribbean island of Hispaniola to educate an audience of Dominican corn buyers and end users on the findings of the council's 2014-2015 Corn Harvest Quality Report, according to an article on the council's website (http://bit.ly/…).
The market for U.S. coarse grains and co-products such as dried distillers grains have a market advantage in such regions in terms of freight costs. For instance, the Dominican Republic is only located 800 miles away from the U.S. and as a corn-deficit country, import about 1.2 million metric tons of corn annually.
The U.S. share of the Dominican corn market has been experiencing encroachment from South American exporters. During the 2009/2010 marketing year, the U.S. had nearly 90% of the Dominican corn market; however, only 600,000 tons were exported to the Dominican Republic in the 2013/2014 marketing year.
The council's team fielded questions from Dominican buyers, who said they have been more satisfied with the quality of U.S. corn this year than in the past, citing concerns about broken corn and foreign material levels.
The council said it will continue to target the Caribbean region with a goal of recapturing U.S. corn market share in the area, including the Dominican Republic.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com
-----------------------------------------------------------------------
DTN WEEKLY DDG SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 3/20/2015 | 3/13/2015 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $190 | $190 | $0 | |
| Modified | $90 | $90 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $200 | $195 | $5 | |
| Indiana | Dry | $200 | $195 | $5 | |
| Iowa | Dry | $190 | $185 | $5 | |
| Michigan | Dry | NO | $200 | ||
| Minnesota | Dry | $170 | $170 | $0 | |
| North Dakota | Dry | $170 | $170 | $0 | |
| New York | Dry | $195 | $205 | -$10 | |
| South Dakota | Dry | $170 | $170 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $180 | $180 | $0 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $175 | $170 | $5 | |
| Iowa | Dry | $160 | $160 | $0 | |
| Michigan | Dry | $175 | $165 | $10 | |
| Minnesota | Dry | $165 | $165 | $0 | |
| Missouri | Dry | $185 | $185 | $0 | |
| Ohio | Dry | $165 | $165 | $0 | |
| South Dakota | Dry | $160 | $165 | -$5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $190 | $190 | $0 | |
| Wet | $75 | $75 | $0 | ||
| Illinois | Dry | $200 | $200 | $0 | |
| Nebraska | Dry | $190 | $190 | $0 | |
| Wet | $75 | $75 | $0 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $190 | $190 | $0 | |
| Indiana | Dry | $185 | $185 | $0 | |
| Iowa | Dry | $175 | $175 | $0 | |
| Michigan | Dry | $190 | $190 | $0 | |
| Minnesota | Dry | $170 | $170 | $0 | |
| Nebraska | Dry | $170 | $175 | -$5 | |
| New York | Dry | $195 | $195 | $0 | |
| North Dakota | Dry | $190 | $190 | $0 | |
| Ohio | Dry | $190 | $185 | $5 | |
| South Dakota | Dry | $175 | $175 | $0 | |
| Wisconsin | Dry | $190 | $185 | $5 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $185 | $185 | $0 | |
| Iowa | Dry | $160 | $160 | $0 | |
| Minnesota | Dry | $165 | $165 | $0 | |
| Nebraska | Dry | $160 | $160 | $0 | |
| Ohio | Dry | $185 | $185 | $0 | |
| South Dakota | Dry | $155 | $155 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $248 | $247 | $1 | |
| *Prices listed per ton. | |||||
| Weekly Average | $179 | $178 | $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 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 | 3/19/2015 | $3.7350 | $133.39 | |
| Soybean Meal | 3/19/2015 | $319.30 | ||
| DDG Weekly Average Spot Price | $179.00 | |||
| DDG Value Relative to: | 3/20 | 3/13 | 3/6 | |
| Corn | 134.19% | 130.39% | 129.48% | |
| Soybean Meal | 56.06% | 51.82% | 52.93% | |
| Cost Per Unit of Protein: | ||||
| DDG | $7.16 | $7.12 | $7.08 | |
| Soybean Meal | $6.72 | $7.23 | $7.04 | |
| 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 (Mar 13, 2015)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 150.00-185.00 | 75.00-85.00 | 45.00-52.00 |
| Minnesota | 155.00-175.00 | 73.00 | 48.00-60.00 |
| Nebraska | 160.00-180.00 | 72.00-85.00 | 53.00-55.00 |
| South Dakota | 156.00-171.00 | 75.00-85.50 | 53.00-58.00 |
| Wisconsin | 175.00-190.00 | 80.00-85.00 | NQ |
| Eastern Corn Belt | 170.00-210.00 | 77.00-87.00 | NQ |
| Kansas | 185.00-205.00 | NQ | 60.00-70.00 |
| Northern Missouri | 188.00-210.00 | NQ | 63.00-71.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 228.00-235.00 | ||
| Pacific Northwest | 229.00-243.00 | ||
| California | 233.00-245.00 | ||
| Texas Border (metric ton) | 260.00-275.00 | ||
| Lethbridge AB | 200.00 | ||
| Chicago | 195.00-212.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA GRAIN AND FEED REPORT (Thurs Mar 12, 2015)
Distillers Dry Grains (includes fuel)
| CURRENT | LAST REPORT | LAST YEAR | |
| Mar 10, 2015 | Mar 3, 2015 | Mar 11, 2014 | |
| Rail to California Points | 240.00-249.00 | 235.00-249.00 | 332.00 |
| FOB Truck to California Points | 242.00-245.00 | 244.00-251.00 | NA |
PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Mar 17, 2015)
Distillers Dried Grains: Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were 3.00 to 6.00 lower from 230.00-242.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were also 3.00 to 6.00 lower from 247.00-257.00.
*All prices quoted per ton unless otherwise noted.
-----------------------------------------------------------------------
NASS/USDA MONTHLY CO-PRODUCTS PRODUCTION
Dry and Wet Mill, Co-products and Products Produced - United States
Mar 2, 2015
Highlights:
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.86 million tons during January 2015 down 3% from December 2014, but up 5% from November 2014. Distillers wet grains (DWG) 65% or more moisture was 1.34 million tons in January 2015 down 5% from December 2014 and down 1% from November 2014.
Wet mill corn gluten feed production was 321.8 thousand tons during January 2015 down 2% from December 2014, but up 9% from November 2014. Wet corn gluten feed 40 to 60% moisture was 313.4 thousand tons in January 2015 down 7% from December 2014 and down 1% from November 2014.
| Co-products and Products | Nov 2014 | Dec 2014 | Jan 2015 |
| Dry Mill | |||
| Condensed distillers solubles (CDS-syrup) | 132,236 | 172,082 | 162,626 |
| Corn oil | 107,190 | 97,380 | 105,356 |
| Distillers dried grains (DDG) | 419,028 | 448,551 | 438,936 |
| Distillers dried grains with solubles (DDGS) | 1,770,904 | 1,919,823 | 1,862,550 |
| Modified distillers wet grains (DWG) <65% moisture | 1,354,729 | 1,411,411 | 1,341,938 |
| Modified distillers wet grains (DWG) 40-64% moisture | 472,819 | 503,258 | 480,134 |
| Wet Mill | |||
| Corn germ meal | 66,384 | 75,031 | 71,492 |
| Corn gluten feed | 295,030 | 329,431 | 321,768 |
| Corn gluten meal | 89,593 | 94,777 | 90,617 |
| Corn oil | 40,980 | 44,551 | 41,961 |
| Wet corn gluten feed 40-60% moisture | 317,273 | 338,077 | 313,400 |
-----------------------------------------------------------------------
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.) |
| 2/20/15 | 94222 | 9675 | 1791 | 105688 | 5571232 |
| 2/27/15 | 92630 | 9511 | 1761 | 103902 | 5477103 |
| 3/06/15 | 93923 | 9644 | 1786 | 105353 | 5553583 |
| 3/13/15 | 94222 | 9675 | 1792 | 105688 | 5571232 |
*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
*Distillers Grains Technology Council Inc.'s 19th Annual Distillers Grains Symposium
The Distillers Grains Technology Council will hold its 19th Annual Distillers Grains Symposium on May 13-14, 2015, at the Sheraton Crown Center at Kansas City, Missouri. For information, contact the DGTC office at (515) 294-4019 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).
-----------------------------------------------------------------------
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.
(CZ/AG)
(SK)
Copyright 2015 DTN/The Progressive Farmer. All rights reserved.
