DTN Weekly Distillers Grains Update
Nebraska Company Expands Line of DDG Products
DAVENPORT, Neb. (DTN) -- When you think about logs for fireplaces, dog treats and composite deck materials, distillers grains are probably not the first thing that come to mind. A Lexington, Neb., company is using their patented bulk densifying technology to expand their lines to a variety of new products, much of which use dried distillers grains as a source.
Rayeman Elements, Inc. in Lexington, Neb., began producing range cubes made from DDG in 2011. Range cubes are used as supplemental feed for cattle in winter when cornstalks are not available and cattle need additional nutrition.
Typically range cubes crumble or break down in transit to feeders, resulting in a 30% to 60% loss. A new technology was developed by Mike Thomas, REI's director of technology and an expert in the extrusion industry. The REI technology uses no binders or chemicals and uses an extruder that involves both heating and cooling elements. As a result, the material is bulk-densified so the cubes hold their shape and can be bagged and transported with minimal loss.
The company's technology condenses DDG to 70% of its original volume, allowing about three times as much product in each shipping container. The result is that more product can be shipped for the same fuel cost. In fact, shipping containers often hit their weight limit before the space limit when carrying bulk-densified products. The bulk-densified product is also easier to handle than loose grain.
The company tested out its first truckload of the new range cubes in April 2011 for Furst McNess, a feed company with headquarters in Illinois. Farmers loved the product, according to Samantha Western, REI president.
"They were thrilled we got the cubes to them in one piece. Every cube was intact with no fines in the bottom of the truck," she said.
Rayeman promises no more than 2% fines with their range cubes, although company officials say in reality, the cubes contain only 1% or less.
The range cubes are about 2 1/2 inches long and about 3/4 inch in diameter.
In 2011, REI also made 200-pound supplement lick tubs of the same DDG material.
The company now makes summer feed pellets from a mixture of DDG and soy hulls, although they can also be made with 100% DDG if requested. The 5/16" pellets are made to be used for weaning calves and are made specifically to flow through creep feeders. The 7/16" creep cubes are smaller and a little less dense for calves' immature teeth and jaws.
Western said REI can use the bulk-densifying technology to make any feedstuff into cubes. This works especially well for feedstuffs like cottonseed, which is a good feed for dairy cattle, but is difficult to handle since it is very light and airy. The company also puts sorghum into cubes, since it is a great feed source, but can be difficult to transport long distances unless it is bulk-densified.
Another new product is cubes for dogs. Mini-pellets are made with the same technology and REI has experimented with adding flavors such as peanut butter, vanilla, nacho cheese and chicken.
"Most dogs love the range cubes. They can't get enough," Western said. "But they are very rich; you don't want to feed too much."
Western added just a small batch has been produced, but REI is planning to launch them for retail sale.
The company is branching out into a variety of other products, besides just feed. One new product is logs that will burn for 4 to 5 hours in fire pits or outdoor fireplaces and hopefully, after more testing, indoor fireplaces.
The logs are 100% DDG, although REI is looking at adding in some type of wood product like pine or wood shavings, since the DDG logs are not self-lighting, Western said.
Another product REI is looking into is burnable energy cubes made from the labels from soda or water bottles and other paper deposits, mixed with DDG. The cubes would be used more as an industrial burnable energy source.
"We don't have the source for raw materials yet," Western said. "We have the capabilities, we just haven't made them for any particular company yet.
Another product still in development is industrial composite materials made from DDG and PVC. Such material could be used as deck boards, siding, structural lumber pieces, pvc pipes, etc.
"We are excited about that. There are almost endless possibilities," Western said. "We know exactly how to make it work; we just need a little more time and money to develop it."
Western added REI has two potential customers looking at buying the machinery to manufacture the composite material.
While the potential for this type of product is huge, she said a company could possibly run 20 composite lines to manufacture fence posts and only use 15,000 tons of DDG per year to fill the orders. So there shouldn't be any concerns about such processing taking DDG away from livestock feed sources.
REI has been meeting with several forestry services to offer the technology for wood pelleting in areas hard hit by beetles, Western said.
"Our process and technology removes all of the air from the pellets, unlike your average pellet mill, so that when the pellets are shipped overseas they do not absorb water the way they are all doing now -- which is creating quite an issue of loss at the point of offloading," she said.
The company is also developing some products for Purina, one of which is a deer feed under the brand name "Primo" that is currently for sale through Walmart, Amazon, etc. Purina is also currently installing its first feed line in its Lubbock, Texas, plant, as REI has sold them equipment to process their own feed in the future.
Western pointed out that the goal of REI is to sell equipment and license technology for businesses to do their own manufacturing.
Since 2011, REI has gone through much growth and a lot of physical changes.
From a building that was just a steel frame and dirt floor, the company has finished the building into a fabricating department, conference room and three offices. But REI has already grown out of that building, so plans are in the works to purchase five additional acres for a second building that will house 24 offices, a large conference room, a break room, a lot of storage space and a loading dock with three bays.
The company has grown to about 55 employees, although REI expects to add more next year.
For more information, see REI's website at http://www.rayemanelements.com/….
Cheryl Anderson can be reached at Cheryl.anderson@telventdtn.com.
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DTN WEEKLY DISTILLERS GRAIN SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 9/13/2013 | 9/6/2013 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $220 | $220 | $0 | |
| Modified | $120 | $120 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $235 | $240 | -$5 | |
| Indiana | Dry | $235 | $240 | -$5 | |
| Iowa | Dry | $225 | $230 | -$5 | |
| Michigan | Dry | $235 | $235 | $0 | |
| Minnesota | Dry | $215 | $210 | $5 | |
| North Dakota | Dry | $210 | $210 | $0 | |
| New York | Dry | $250 | $260 | -$10 | |
| South Dakota | Dry | $210 | $210 | $0 | |
| Hawkeye Gold, IA (515-663-6413) | |||||
| Iowa | Dry | $218 | $225 | -$7 | |
| Modified | $103 | $110 | -$7 | ||
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $212 | $212 | $0 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $220 | $220 | $0 | |
| Wet | $85 | $85 | $0 | ||
| Illinois | Dry | $260 | $260 | $0 | |
| Nebraska | Dry | $220 | $220 | $0 | |
| Wet | $85 | $85 | $0 | ||
| Wisconsin | Dry | $230 | $230 | $0 | |
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $242 | $242 | $0 | |
| Indiana | Dry | $240 | $240 | $0 | |
| Iowa | Dry | $220 | $225 | -$5 | |
| Michigan | Dry | $240 | $240 | $0 | |
| Minnesota | Dry | $210 | $212 | -$2 | |
| Nebraska | Dry | $215 | $215 | $0 | |
| New York | Dry | $250 | $250 | $0 | |
| North Dakota | Dry | $205 | $210 | -$5 | |
| Ohio | Dry | $240 | $240 | $0 | |
| South Dakota | Dry | $205 | $210 | -$5 | |
| Wisconsin | Dry | $230 | $230 | $0 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $235 | $240 | -$5 | |
| Iowa | Dry | $215 | $225 | -$10 | |
| Minnesota | Dry | $205 | $215 | -$10 | |
| Nebraska | Dry | $210 | $220 | -$10 | |
| Ohio | Dry | $235 | $240 | -$5 | |
| South Dakota | Dry | $200 | $205 | -$5 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $300 | $305 | -$5 | |
| *Prices listed per ton. | |||||
| Weekly Average | $224 | $227 | $3 | ||
| 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 | 9/12/2013 | $4.7900 | $171.07 | |
| Soybean Meal | 9/12/2013 | $480.90 | ||
| DDG Weekly Average Spot Price | $224.00 | |||
| DDG Value Relative to: | 9/13 | 9/6 | 8/30 | |
| Corn | 130.94%* | 129.85%* | 127.26%* | |
| Soybean Meal | 46.58% | 47.34% | 48.35% | |
| Cost Per Unit of Protein: | ||||
| DDG | $8.96 | $9.08 | $9.04 | |
| Soybean Meal | $10.12 | $10.09 | $9.84 | |
| 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 (Sep 6, 2013)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 200.00-234.50 | 93.00-113.00 | 70.00-90.00 |
| Minnesota | 205.00-220.00 | 105.00 | 80.00 |
| Nebraska | 209.00-228.00 | 100.00-118.00 | 75.00-90.00 |
| South Dakota | 200.00-210.00 | 105.00-112.00 | 70.00-81.50 |
| Wisconsin | 230.00-248.00 | 106.00-125.00 | NQ |
| Eastern Corn Belt | 218.00-255.00 | 100.00-116.00 | 60.000 |
| Kansas | 210.00-238.00 | NQ | 70.00-90.00 |
| Northern Missouri | 220.00-222.00 | NQ | 75.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 250.00-264.00 | ||
| Pacific Northwest | 261.00-271.00 | ||
| California | 260.00-275.00 | ||
| Texas Border | 295.00-310.00 | ||
| Lethbridge AB | 220.00-240.00 | ||
| Chicago | 250.00-262.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Sep 10, 2013)
Distillers Dry Grains
FOB Truck 285.00-306.00 up 15.00-31.00
Rail Delivered California Points 275.00-283.00 up 5.00-dn 2.00
PACIFIC NORTHWEST WEEKLY FEED (Tue Sep 10, 2013)
Offers for Distillers Dried Grains delivered by rail to feed mills in the Pacific Northwest were 276.00-278.00, steady to 4.00 lower compared to week ago offers. Offers for distillers dried grains trans- loaded onto trucks and delivered to Willamette Valley dairies were 293.00- 294.00, 1.00 to 3.00 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.) |
| 08/16/13 | 83974 | 8622 | 1597 | 94193 | 4395808 |
| 08/23/13 | 81586 | 8377 | 1551 | 94514 | 4270809 |
| 08/30/13 | 81486 | 8367 | 1549 | 91403 | 4265600 |
| 09/06/13 | 84372 | 8663 | 1604 | 94639 | 4416641 |
*Information from 2010 Weekly U.S. Fuel Ethanol/Livestock Feed Production report (http://www.ethanolrfa.org/…)
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IN THE NEWS
Israel Grows Niche for U.S. Corn Co-Products
While Israel has been a steady buyer of U.S.-produced corn coproducts like dried distilelrs grains with solubles, corn gluten feed and corn gluten meal in recent years. But while the country's imports has been small, U.S. co-products have found a niche in Israel, according to an article by the U.S. Grains Council (http://bit.ly/…).
U.S. feed grains have had a difficult time competing in Israel due to competition from the Black Sea region and South America. Also, many countries in the Middle East import only a limited amount of U.S. corn.
Since vessels less than full are more expensive, Israeli importers have been bring in in full vessels containing combinations of U.S. corn and co-products, soybeans or even sunflower meal, helping such shipments to be more competitive.
The U.S. Grains Council is building partnerships in this area in order to provide opportunities for U.S. feed grains and co-products to compete in markets such as this.
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
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
*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.
(AG)
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