DTN Weekly Distillers Grains Update
Feeding DDG Can Help With Winter Feed Prices, Hay Shortage
With winter approaching, beef producers may want to begin thinking about their winter forage needs and ways to survive high feed costs, especially in light of dwindling hay stocks. Incorporating dried distillers grains into beef rations may be a great way to survive the winter.
Feed costs may be high this winter season, although costs could vary by region, depending on whether areas have received sufficient or too much rainfall, according to Kevin Gould, Extension beef educator at Michigan State University.
"Through the country last year, it was the most challenging year we've ever had on the beef side for forage-based diets. Everyone was grappling for supplies," he said. "It's better this year, at least in Michigan. Rainfall has been better, we haven't had the high temperatures like last year and the crops are doing fairly well."
One challenge to forage supplies and prices is a loss of alfalfa acres, beginning in 2008 when grain prices began to rise, he said. Farmers have been pulling hay acres out of production for the last four to five years.
"In Michigan, we are down between 33% to 40% on hay-based acres," he said. "That leaves us with a pretty big challenge for finding low- to moderate-quality forage for beef diets. There's just less hay acres out there."
According to the National Agricultural Statistics Service, U.S. hay stocks on May 1, 2013, totaled 14.2 million tons, down 34% from a year ago. This is the lowest May 1 stocks on record.
"This is the lowest carryover in my lifetime," Gould said. "Although forage harvest should be a little better this year, there still may be a fairly tight supply coming into fall.
Many areas of Michigan received a record of 12 to 13 inches of rain in April prior to planting season. First alfalfa cutting yields were very good; however, the rains put planting behind between 10 days and two weeks. With some recent cooler temperatures, Gould said there has been some concern about corn crop maturity.
However, this could present some opportunity for forage in terms of corn silage or other crops that don't mature and can be moved to forage production.
Even corn stover is a viable option.
"We have been harvesting a substantial amount of corn stover for the past six years," Gould said.
Dried distillers grains are a popular choice for finishing diets, although the challenge in feeding DDG, especially for small- to average-sized operations, is having enough storage or bunk space.
"Dry distillers grains are the easier to utilize," he said. "Modified or wet may be difficult for the average-sized producer to use up before it deteriorates."
Distillers grains need to be limit fed with enough bunk space for uniform consumption, as DDG is very palatable and cows will consume it very fast.
Larger operations may have an easier time incorporating distillers with low-quality forage, as they can afford more equipment such as grinders to incorporate feedstuffs, he said.
Producers can feed DDG with any kind of crop residue such as corn stover or soybean stubble, some straws or any kind of low-quality grass, depending on the area. For instance, last year producers were cutting CRP acres wherever they could find it and feeding that with distillers.
Gould said that with grain prices dropping, DDG will likely follow suit, making it even better to feed with variable quality forage.
It is also important that producers balance DDG in their rations.
"The days of just feeding hay to beef cows for the winter are long gone with the high prices we've been seeing," he said. "The most important thing for producers is to balance the ration for the right stage of production utilizing the feed sources they have available."
Protein levels in DDG are about 30% on a dry matter basis depending on the plant, Gould said. With cows needing between 8% and 10% protein in diets, it doesn't take much DDG to supplement in the ration to get that protein up."
Distillers in Gould's area are typically fed at about 2-5 pounds per cow per day to get that protein requirement.
For producers needing help balancing rations, Gould referred to the "Cowculator" developed by Oklahoma State University. The "Cowculator" is a free beef cow ration balancing program (Excel) that can be downloaded for free (http://bit.ly/…).
"I've been using this for that past six to seven years," he said. "It's a good tool for adding feed and getting rations balanced, with adjustments for environment, as winter conditions can vary needs."
Cheryl Anderson can be reached at cheryl.anderson@telventdtn.com.
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DTN WEEKLY DISTILLERS GRAIN SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 8/16/2013 | 8/9/2013 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $225 | $230 | -$5 | |
| Modified | $125 | $130 | -$5 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $235 | $235 | $0 | |
| Indiana | Dry | $230 | $232 | -$2 | |
| Iowa | Dry | $230 | $225 | $5 | |
| Michigan | Dry | $225 | |||
| Minnesota | Dry | $220 | $220 | $0 | |
| North Dakota | Dry | $215 | $215 | $0 | |
| New York | Dry | $245 | $255 | -$10 | |
| South Dakota | Dry | $215 | $215 | $0 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | $228 | $223 | $5 | |
| Modified | $105 | $100 | $5 | ||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $218 | $218 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $215 | $218 | -$3 | |
| Wet | $75 | $80 | -$5 | ||
| Illinois | Dry | $250 | $250 | $0 | |
| Nebraska | Dry | $215 | $218 | -$3 | |
| Wet | $75 | $80 | -$5 | ||
| Wisconsin | Dry | $240 | $238 | $2 | |
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $242 | $240 | $2 | |
| Indiana | Dry | $235 | $235 | $0 | |
| Iowa | Dry | $220 | $220 | $0 | |
| Michigan | Dry | $230 | $235 | -$5 | |
| Minnesota | Dry | $215 | $215 | $0 | |
| Nebraska | Dry | $210 | $210 | $0 | |
| New York | Dry | $250 | $250 | $0 | |
| North Dakota | Dry | $210 | $210 | $0 | |
| Ohio | Dry | $235 | $240 | -$5 | |
| South Dakota | Dry | $205 | $205 | $0 | |
| Wisconsin | Dry | $230 | $225 | $5 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $230 | $230 | $0 | |
| Iowa | Dry | $220 | $225 | -$5 | |
| Minnesota | Dry | $215 | $220 | -$5 | |
| Nebraska | Dry | $220 | $225 | -$5 | |
| Ohio | Dry | $230 | $235 | -$5 | |
| South Dakota | Dry | $200 | $200 | $0 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $285 | $285 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $225 | $226 | -$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@telventdtn.com.
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| VALUE OF DDG VS. CORN & SOYBEAN MEAL | ||||
| Settlement Price: | Quote Date | Bushel | Short Ton | |
| Corn | 8/15/2013 | $4.8150 | $171.96 | |
| Soybean Meal | 8/15/2013 | $409.80 | ||
| DDG Weekly Average Spot Price | $225.00 | |||
| DDG Value Relative to: | 8/16 | 8/9 | 8/2 | |
| Corn | 130.84%* | 133.64%* | 131.53%* | |
| Soybean Meal | 54.90% | 53.49% | 53.83% | |
| Cost Per Unit of Protein: | ||||
| DDG | $9.00 | $9.04 | $9.16 | |
| Soybean Meal | $8.63 | $8.89 | $8.96 | |
| Notes: | ||||
| Corn and soybean prices take 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. | ||||
*The abrupt shift in the DDG to corn ratio after July 12th is due to the transition from July corn futures to the lower-priced September corn contract.
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USDA MARKET NEWS/DISTILLER GRAINS PRICES
USDA WEEKLY DISTILLERS GRAINS SUMMARY (Aug 9, 2013)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 210.00-230.00 | 98.00-115.00 | 70.00-75.00 |
| Minnesota | 205.00-218.00 | 102.00 | 75.00 |
| Nebraska | 209.00-224.00 | 95.00-111.00 | 71.00-83.00 |
| South Dakota | 198.00-206.50 | 105.00-107.00 | 70.00-82.00 |
| Wisconsin | 228.00-245.00 | 106.00-122.00 | NQ |
| Eastern Corn Belt | 218.00-245.00 | 108.00-114.00 | NQ |
| Kansas | 227.00-235.00 | NQ | 79.00-94.00 |
| Northern Missouri | 225.00-235.00 | NQ | 77.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 240.00-250.00 | ||
| Pacific Northwest | 265.00-278.00 | ||
| California | 265.00-275.00 | ||
| Texas Border | 295.00-315.00 | ||
| Lethbridge AB | 235.00-248.00 | ||
| Chicago | 249.00-258.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Aug 13, 2013)
Distillers Dry Grains
FOB Truck 270.00-280.00 no comp
Rail Delivered California Points 280.00-285.00 no comp
PACIFIC NORTHWEST WEEKLY FEED (Tue Aug 13, 2013)
Offers for Distillers Dried Grains delivered by rail to feed mills in the Pacific Northwest were 266.00-275.00, steady to 2.00 lower compared to week ago offers. Offers for distillers dried grains trans- loaded onto trucks and delivered to Willamette Valley dairies were 284.00- 290.00, also steady to 2.00 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.) |
| 07/19/13 | 84869 | 8714 | 1614 | 95197 | 4442683 |
| 07/26/13 | 82780 | 8500 | 1574 | 92854 | 4333308 |
| 08/02/13 | 84869 | 8714 | 1614 | 95197 | 4442683 |
| 08/09/13 | 85267 | 8755 | 1621 | 95644 | 4463516 |
*Information from 2010 Weekly U.S. Fuel Ethanol/Livestock Feed Production report (http://www.ethanolrfa.org/…)
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
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IN THE NEWS
DDGS Study Finding Low Antibiotic Concentrations Published
The results of a University of Minnesota study that showed low antibiotic residues in distillers grains was recently published in the Journal of Animal Science, according to an article by Ethanol Producer (http://bit.ly/…).
The study was completed in 2012 and was conducted by six researchers from the University of Minnesota Department of Animal Sciences and Department of Food Science Nutrition, the University of Minnesota Extension Service and a contributor from SGS North America Inc. The study was funded by the Minnesota Corn Research and Promotion Council
A total of 159 samples of distillers grains were collected, comprised of 80 samples of dry distillers grains and 79 samples of wet distillers grains. Most antibiotic residues were found in the dry distillers, with 21.3% of the samples containing residues.
The study found that antibiotic residues in distillers grains are rendered inactive during fermentation at ethanol plants due to low pH values of distillers grain, and high temperatures reached during fermentation, distillation and drying.
The researchers found that in the 12.6% of the samples containing low antibiotic levels, the residue were biologically inactive. Also, only one sample inhibited E. coli growth. The researchers noted that even the samples with residues were at low concentrations well below current FDA-approved levels.
Cheryl Anderson can be reached at cheryl.anderson@telventdtn.com
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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
*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
*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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