DTN Weekly Distillers Grains Update

ARS Researchers Explore DDG for Use in Cat Litter

A USDA researcher and his colleagues have studied using dried distillers grains as the main component in cat litter, although the project was somewhat of an accident.

According to Dr. Steven Vaughn, plant physiologist at the Functional Foods Research Unit for the USDA Agricultural Research Service in Peoria, Ill., he was looking at DDG for horticultural applications when he found that DDG had an odor, especially as it begins to decompose.

A colleague who was conducting some experiments with corn oil found that when the oil was extracted from DDG, it no longer smelled bad. It had a pleasant, grainy odor, something like breakfast cereal, Vaughn said.

The colleague remarked that the resulting DDG product looked like kitty litter. That remark struck a chord with Vaughn, since he already knew that DDG absorbs water well, once the oil is removed.

So, the researchers began testing the extracted DDG or "x-DDG." They found that when the DDG-based litter is wet for a few days, it doesn't smell nearly as bad as commercial litter does.

Vaughn noted there are a few companies that already use DDG in their litter, along with other ingredients.

After testing, the researchers found they needed to add some glycerin, a coproduct of biodiesel production, to the DDG to prevent dust. Since particles of DDG are typically very fine, the glycerol helps prevent particles from becoming airborne when being scooped or pawed by animals.

Also, the researchers used guar gum mixed in the DDG to help it clump when wet. Vaughn said the guar works fine, although other types of gum could be used as well.

Also, a tiny amount of copper sulfate was used to counteract the amine, a chemical found in cat urine, that causes odor.

"The copper grabs the chemical so it doesn't smell," Vaughn said. "It is also very anti-bacterial, so it is potentially good in that respect as well."

Vaughn stressed the amount of cooper is very low and is no danger to animals.

Another beneficial characteristic of the DDG-based litter is that it is more environmentally friendly that clay-based litters, which constitute the majority of litter sold in retail stores.

While clay-based litters have to be put in with trash and end up in landfills, the DDG litter can be composted, or can be flushed in the toilet, as it will break down in the sewer.

The DDG in the litter can also be spread on turf grass, as it can help curb weeds and help grass grow better, as long as it is used at low levels, he said.

Even the method of extracting the oil is "super eco-friendly," Vaughn said, as it is done with hexane, a chemical which extracts oil extremely well and has been also used for extracting soybean oil.

Although other researchers may have looked at using DDG as the primary component cat litter, Vaughn said nobody else has published scientific papers on the subject.

Vaughn had articles published in a 2012 issue of Industrial Crops and Products, and in the October 2013 issue of Agricultural Research magazine.

Vaughn said as a federal employee he cannot begin a start-up company to market the litter himself. Also, since DDG is already used by some companies in cat litter, he is unable to get a patent, since it is not considered new technology.

In the future, he would like to see if he could get a company interested in using his research, which he believes could be a good product.

"Our litter absorbs more moisture, doesn't smell, and clumps better" than most cat litter sold in the U.S., he said.

He added that the majority of DDG will still be used for livestock feed, but this would offer an alternative market for ethanol plants.

Other researchers involved in the project were ARS chemists Mark A. Berhow and Jill K. Winkler-Moser at Peoria, and Edward Lee of Summit Seed Inc., in Manteno, Ill.

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

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IN THE NEWS

Webinar Discusses Effects of Low-Oil Distillers Grains on Livestock Species

A recent webinar sponsored by Ethanol Producer Magazine gave participants information about corn oil extraction and the effects of low-oil dried distillers grains on animal nutrition, according to an article by Ethanol Producer (http://bit.ly/…).

Approximately 80% of ethanol plants are now extracting corn oil and there has been a 30% increase corn oil use by the biodiesel market. Ethanol plants gained additional revenue by removing oil and it has become an important co-product of ethanol production.

Dr. Harold Tilstra, from Purina Animal Nutrition LLC, educated participants on the effects of low-oil distillers grains on the four primary species fed distillers grains.

Since the corn oil in DDG tends to depress milk fat production with high inclusion rates, low-oil DDG has been well-accepted by the dairy industry. However, for beef cattle, the lower caloric content of low-oil DDG is a problem since the focus is on feeding cows as much as they can eat. Wet distillers grains with solubles have about 120% of the energy of corn, making low-oil distillers still an economical source of energy and protein.

Pigs are able to digest some of the energy out of the fiber in DDG, making up for some of the energy lost when oil is removed. Still, producers must make up for those lost calories. On the other hand, removing some of the oil helps combat DDG's tendency to soften pork belly fat.

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Low-oil DDG is slightly less desirable for poultry, since removing oil results in less energy and a less-than-ideal amino acid balance.


Company Adds 350 Railcars for DDG

A German railcar leasing and rail logistics company recently announced that it has expanded its U.S. railcar fleet, including 350 jumbo, covered hoppers for dried distillers grains, according to an article by RailwayAge Magazine (http://bit.ly/…).

Any addition of railcars designed for DDG is good news for U.S. ethanol plants who have been frustrated in recent months from a shortage of railcars that is causing backlogs in scheduling and delays in shipments.

Hamburg, Germany-based VTG Aktiengesellschaft (VTG), said the railcars, which have an average age of six years, were acquired by its U.S. subsidiary VTG Rail.

VTG Rail President Chris Schmalbruch said the new acquisition will allow the company to increase both its fleet and profitability and will give the company access to another promising market.

Dr. Heikok Fischer, VTG's CEO, said, "Furthermore, with this purchase, we are gaining an important new customer who requires the railcars for product distribution both in and beyond the U.S."

VTG Rail now operates a fleet of more than 4,000 railcars in the North American market.

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

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DTN WEEKLY DISTILLERS GRAIN SPOT PRICES

CURRENT CURRENT
COMPANY STATE 12/13/2013 12/6/2013 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $230 $225 $5
Modified $122 $118 $4
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry NO NO
Indiana Dry $230 $220 $10
Iowa Dry $220 $220 $0
Michigan Dry $225 $225 $0
Minnesota Dry $215 $215 $0
North Dakota Dry $220 $190 $30
New York Dry $232 $230 $2
South Dakota Dry $210 $205 $5
Hawkeye Gold, IA (515-663-6413)
Iowa Dry $224 $224 $0
Modified $100 $100 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $215 $212 $3
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $215 $215 $0
Wet $95 $95 $0
Illinois Dry $230 $230 $0
Nebraska Dry $215 $215 $0
Wet $95 $95 $0
Wisconsin Dry $220 $225 -$5
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $230 $230 $0
Indiana Dry $225 $225 $0
Iowa Dry $210 $205 $5
Michigan Dry $225 $225 $0
Minnesota Dry $200 $200 $0
Nebraska Dry $215 $215 $0
New York Dry $235 $235 $0
North Dakota Dry $205 $200 $5
Ohio Dry $220 $220 $0
South Dakota Dry $200 $200 $0
Wisconsin Dry $215 $220 -$5
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $230 $225 $5
Iowa Dry $215 $220 -$5
Minnesota Dry $210 $215 -$5
Nebraska Dry $220 $220 $0
Ohio Dry $220 $225 -$5
South Dakota Dry $215 $225 -$10
Western Milling, Goshen, California (559-302-1074)
California Dry $305 $303 $2
*Prices listed per ton.
Weekly Average $219 $218 $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 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 12/12/2013 $4.2825 $152.95
Soybean Meal 12/12/2013 $459.40
DDG Weekly Average Spot Price $219.00
DDG Value Relative to: 12/6 11/29 11/22
Corn 143.19% 142.26% 140.33%
Soybean Meal 47.67% 47.54% 51.58%
Cost Per Unit of Protein:
DDG $8.76 $8.48 $8.48
Soybean Meal $9.67 $9.39 $8.65
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 6, 2013)

Dried Modified Wet
FOB PLANT PRICES PER TON
Iowa 205.00-227.00 95.00-117.00 63.00-68.00
Minnesota 195.00-208.00 95.00 100.00
Nebraska 210.00-225.00 85.00-105.00 56.00-65.00
South Dakota 198.00-195.00 90.00-95.00 64.00-68.00
Wisconsin 210.00-220.00 98.00-100.00 NQ
Eastern Corn Belt 210.00-235.00 108.00-112.00 NQ
Kansas 210.00-225.00 NQ 60.00-68.00
Northern Missouri 215.00-222.00 NQ 67.00
DELIVERED PRICES PER TON
CIF NOLA 285.00-300.00
Pacific Northwest 280.00-292.00
California 285.00-300.00
Texas Border 315.00-325.00
Lethbridge AB 230.00-250.00
Chicago 249.00-260.00

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

CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Dec 10, 2013)

Distillers Dry Grains 
  FOB Truck                          NA
  Rail Delivered California Points   Ind Offer 300.00  up 10.00-4.00
PACIFIC NORTHWEST WEEKLY FEED (Tue Dec 10, 2013)
Offers for Distillers Dried Grains delivered by rail to feed mills in the Pacific Northwest were 285.00-293.00, steady to 5.00 higher compared to week ago offers.  Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were 300.00-311.00, also steady to 5.00 higher than last week's offers.

*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.)
11/15/13 89943 9235 1710 100889 4708306
11/22/13 92232 9470 1754 103456 4828097
11/29/13 90839 9327 1727 101894 4755181
12/06/13 93923 9644 1786 105353 4916638

*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

http://ncga.com/…

*Iowa Corn

http://www.iowacorn.org/…

Nebraska Corn Board

http://www.nebraskacorn.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 (402) 364-2183-1527, or e-mail cheryl.anderson@telventdtn.com.

(SK/AG)

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