DTN Weekly Distillers Grains Update

DDG Works Well for Early Weaning of Beef Calves

With continuing drought limiting forage resources in many areas of the country, some cattle producers may be forced to early wean calves in order to use those resources more efficiently.

Using dried distillers grains as part of an early weaning program can help producers achieve good results, according to Larry Hollis, professor and extension beef veterinarian at Kansas State University.

Early weaning typically occurs when a calf is between 90 and 180 days of age. Weaning begins when calves join their mothers in consuming grass or other forages.

"If the calves eat something else while still with their mothers, it is easier to transition them off to some other form of feed after you wean them," Hollis told DTN.

Hollis said calves fed distillers gains or creep feeds before weaning may have an easier time adjusting.

"The whole concept of creep feeding is to make the transition from pre-weaning to post-weaning easier on the calf," he said. "Then they already know how to eat when you wean them."

Distillers grains fit very easily into an early weaning plan. In fact, Hollis said he would recommend feeding DDG in place of expensive creep feed.

"As long as you have adequate grass, I would use distillers," he said. "It complements grass so well and is a very handy source of protein and phosphorus."

Protein and phosphorus are the two most expensive things that producers have to supplement animals on grass. The reason DDG is such a good source of protein and phosphorus is that the ethanol distillation process concentrates the nutrients in corn three times.

Hollis recommends using dried distillers grains, which he considers the easiest to use. Wet distillers grains work well too, although producers need a plan for proper storage, i.e. bunkers or silos.

As for the amount, Hollis said it depends on what the producer's pasture resources are, but in general he said about one to two pounds per calf per day as a general rule.

Since calves will probably eat more than that if given free choice, he recommends using a creep feeding station. A creep feeder has a fence around it that prevents cows from getting to the calves' food, has a covered top, but is open at the bottom. As calves eat feed from the bottom, the feed gravitates down and keeps refilling the station.

Hollis said DDG works very well for feeding calves, no matter if the producer's goal is to teach them to eat, or to add weight.

Also, DDG is very palatable to both cows and calves.

"They go after distillers like candy," he said. "It is a really nice product. You can use it before and after weaning."

Cheryl Anderson can be reached at Cheryl.anderson@telventdtn.com.

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DTN WEEKLY DISTILLERS GRAIN SPOT PRICES

CURRENT PREVIOUS
COMPANY STATE 7/26/2013 7/19/2013 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $235 $235 $0
Modified $135 $135 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $235 $245 -$10
Indiana Dry $235 $245 -$10
Iowa Dry $228 $238 -$10
Minnesota Dry $220 $230 -$10
North Dakota Dry $220 $220 $0
New York Dry $250 $260 -$10
South Dakota Dry $215 $220 -$5
Hawkeye Gold, IA (515-663-6413)
Iowa Dry $230 NA
Modified $110 NA
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $220 $230 -$10
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $220 $225 -$5
Wet $80 $85 -$5
Illinois Dry $260 $265 -$5
Nebraska Dry $220 $225 -$5
Wet $80 $85 -$5
Wisconsin Dry $242 $245 -$3
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $240 $245 -$5
Indiana Dry $240 $245 -$5
Iowa Dry $225 $230 -$5
Michigan Dry $240 $245 -$5
Minnesota Dry $220 $225 -$5
Nebraska Dry $220 $225 -$5
New York Dry $250 $250 $0
North Dakota Dry $210 $215 -$5
Ohio Dry $240 $245 -$5
South Dakota Dry $210 $220 -$10
Wisconsin Dry $235 $240 -$5
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $240 $245 -$5
Iowa Dry $230 $235 -$5
Minnesota Dry $225 $230 -$5
Nebraska Dry $230 $235 -$5
Ohio Dry $240 $245 -$5
South Dakota Dry $205 $210 -$5
Western Milling, Goshen, California (559-302-1074)
California Dry $285 $290 -$5
*Prices listed per ton.
Weekly Average $230 $235 -$5
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@telventdtn.com.

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VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 7/25/2013 $4.9600 $177.14
Soybean Meal 7/25/2013 $447.80
DDG Weekly Average Spot Price $230.00
DDG Value Relative to: 7/19 7/12 7/5
Corn 129.84%* 91% 96%
Soybean Meal 51.36% 45% 47%
Cost Per Unit of Protein:
DDG $9.20 $9.36 $9.28
Soybean Meal $9.43 $11.07 $10.33
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.

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.

* Since July 15, the corn price reflects the September contract, which changes the ratios of DDG to corn.

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USDA MARKET NEWS/DISTILLER GRAINS PRICES

USDA WEEKLY DISTILLERS GRAINS SUMMARY (Jul 19, 2013)

Dried Modified Wet
FOB PLANT PRICES PER TON
Iowa 225.00-240.00 105.00-125.00 75.00-79.00
Minnesota 215.00-230.00 110.00 75.00-80.00
Nebraska 215.00-230.00 105.00-121.00 75.00-95.00
South Dakota 209.00-220.00 114.00-119.00 79.00-86.00
Wisconsin 230.00-253.00 119.00-120.00 75.00
Eastern Corn Belt 230.00-255.00 119.00-120.00 75.00
Kansas 235.00-250.00 NQ 82.00-105.00
Northern Missouri 222.00-235.00 NQ 75.00
DELIVERED PRICES PER TON
CIF NOLA 260.00-275.00
Pacific Northwest 275.00-288.00
California 277.00-290.00
Texas Border 310.00-330.00
Lethbridge AB 250.00-262.00
Chicago 260.00-270.00

Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture

CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Jul 23, 2013)

Distillers Dry Grains 
   FOB Truck Offers                  275.00-290.00 dn 5.00-unch 
   Rail Delivered California Points  Offers 280.00-294.00 no comp
PACIFIC NORTHWEST WEEKLY FEED (Tue Jul 23, 2013)
Offers for Distillers Dried Grains delivered by rail to feed mills in the Pacific Northwest were 273.00-285.00, steady to 7.00 lower compared to week ago offers. Offers for distillers dried grains trans- loaded onto trucks and delivered to Willamette Valley dairies were 291.00- 300.00, also steady to 7.00 lower compared to week ago offers.

*All prices quoted per ton unless otherwise noted.

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RFA WEEKLY U.S. LIVESTOCK FEED PRODUCITON

CO-PRODUCT OUTPUTS (metric tons)
Week Ending Distillers Grains Corn Gluten Feed Corn Gluten Meal Total Feed Corn Oil (lbs.)
06/28/13 85864 8816 1633 96313 4494766
07/05/13 87655 9000 1667 98322 4588515
07/12/13 87158 8949 1657 97764 4562474
07/19/13 84869 8714 1614 95197 4442683

*Information from 2010 Weekly U.S. Fuel Ethanol/Livestock Feed Production report (http://www.ethanolrfa.org/…)

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IN THE NEWS

Analysis: DDGS Valued at 89% of Corn

A recent analysis of the value of dried distillers grains with solubles shows an average of 89% of the value of corn in the past six years, according to an article by Midwest Producer (http://bit.ly/…).

Pricing of DDGS is most influenced by the relative value of energy and protein, as well as prices of corn and soybean meal. But University of Illinois economists found substantial variations to those relationships.

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The prices of DDGS have ranged between less than 70% to almost 110% of the value of corn, with an average of 89% from the time period of January 2007 through July 2013. Also, DDGS is priced at a substantial discount to soybean meal.

Using a simple linear regression model to compare price patterns, the economists estimated that DDGS prices changed by 85 cents per ton for each $1 per ton change in the price of corn. Prices of DDGS changed by 11 cents per ton for each $1 per ton change in the price of soybean meal.

Over the six-year time period studied, the model indicated that the combination of corn and soybean meal prices accounted for 92% of the variation in DDGS prices.

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DDG LINKS/RESOURCES

Organizations

*Distillers Grains Technology Council

http://www.distillersgrains.org

*National Corn Growers Association Corn Distillers Grains Brochure

http://ncga.com/…

*Iowa Corn

http://www.iowacorn.org/…

*Renewable Fuels Association - Ethanol Co-Products

http://www.ethanolrfa.org/…

*American Coalition for Ethanol

http://www.ethanol.org/…

*U.S. Grains Council

http://www.grains.org/…

*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

http://www.ddgs.umn.edu

*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

http://beef.unl.edu/…

*University of Nebraska Extension

http://ianrpubs.unl.edu/…

*Iowa Beef Center - Iowa State University

http://www.iowabeefcenter.org/…

*University of Missouri - Byproducts Resource Page

http://agebb.missouri.edu/…

*South Dakota State University - Dairy Science Department - Dairy cattle research

http://dairysci.sdstate.edu/…

(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

*Distillers Grains Technology Council Inc.'s 16th Annual Distillers Grains Symposium

The Distillers Grains Technology Council will hold its 18th Annual Distillers Grains Symposium on May 14-15, 2014, at the Omni Mandalay at Las Colinas, Dallas, Texas. For information, contact the DGTC office at (502) 852-1575 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).

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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 (308) 224-1527, or e-mail cheryl.anderson@telventdtn.com.

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