DTN Weekly Distillers Grains Update
Pelleted Distillers Grain/Corn Residue Pellet Makes Finishing Steers More Economical
OMAHA (DTN) -- Finishing steers can be made a little more economical without sacrificing performance, according to a recent University of Nebraska feeding trial that examined the effects of replacing corn in finishing beef diets with a newly developed, treated corn stover/distillers grain pelleted product.
According to Jim C. MacDonald, associate professor of ruminant nutrition at the University of Nebraska-Lincoln, researchers at UNL had already done a fair amount of research with using calcium-oxide-treated residue in finishing diets and proved that producers can use up to 20% calcium-oxide-treated corn residue in without sacrificing performance in diets containing 35-40% wet or modified distillers grain (MDGS).
As a natural progression to the research already done at UNL, MacDonald said UNL partnered with Pellet Technology USA, LLC, a company located near Gretna, Nebraska. The company developed a business model to harvest or purchase corn residue and use calcium-oxide-treated residue mixed with distillers grains with solubles in a pellet. Produces will be able to purchase the pellets like a commodity, saving them the time-intensive process of processing the residue themselves.
THE STUDY
The study evaluated the effects of replacing 10%, 20% or 30% corn (dry matter basis) with the treated corn stover pellets and MDGS in a diet containing either 20% or 40% MDGS on finishing cattle performance.
The 183-day study used 336 crossbred steer calves with initial body weights of approximately 663 pounds. After being limit-fed a common diet for five days prior to the trial, steers were separated into two weight blocks (light and heavy) and assigned randomly to pens. The steers were given either 20% or 40% MDGS with either 10%, 20% or 30% pelleted treated corn stover and DDG. A control diet consisted of a 50:50 blend of dry-rolled corn and high-moisture corn, and 40% MDGS.
MacDonald said the researched used modified distillers grains with solubles as opposed to dried product because there seems to be some synergy between wet or modified distillers grains and the higher inclusion rates of corn residues.
One of the things the researchers learned is that the higher the inclusion rate of modified or wet distillers, the more residue you can use in the diet.
"We were able to add 20% of the residue in diets containing 40% modified distillers grain, but when we add only 20% modified distillers grains, we could add 10% without giving up any performance," he said. "The cattle still do fine if you add more, but this is how much you can displace corn with these different amounts of distillers grains."
But many other factors need to be considered in determining amounts of distillers and residue to feed. But in the end, it all boils down to economics. The price of corn is not as important as the price of distillers grains relative to corn and the price of the pellet relative to corn.
"You've got the price of distillers grains, the price of the pellets and the residue. You've got the price of corn," he said. "All those things interact to figure out how much you should feed in a given scenario."
If the distillers grains are cheap enough, it would make sense to get 20%-40% distillers in the diet, he said. Although most people will begin removing distillers grains from rations once it gets to be the same price as corn, the UNL data suggests that producers could even use distillers grains that are the same price as corn.
"As long as distillers grains prices are lower than corn and you can get somewhere between 20% and 40% distillers grains in the diet, and if the pellet is cheaper than corn, then it would probably make sense to use the pellet, regardless of corn price," MacDonald said.
RESULTS
Cattle given 10%, 20% or 30% of the pelleted feed with 40% MDGS had equal or similar performance to the control diet with 40% MDGS. Those given the 10% pelleted feed with 20% MDGS had similar results as the control diet, however the researchers found that feeding the pellet at 20% or 30% of the diet dry matter with 20% MDGS decreased feed efficiency.
The most important thing learned from the trial is that with 40% MDGS, producers can feed up to 20% of the pellet and not give up any animal performance. Likewise, with 20% MDGS, producers can feed up to 10% of the pellet and not sacrifice performance.
"The cattle did fine if you included at greater levels, but feed efficiency declined after those points, so you're giving up some performance in that case," he said. "So you have to make that up by paying less for the feed in order to make it work. Those are the break points we think are critical for producers if they are interested in using the product.
MacDonald pointed out that while this most recent feeding trial was with using the pellets in finishing diets, the UNL researchers have also evaluated it in growing diets, as well as in high roughage diets.
"Residues fit into a lot of beef cattle production systems," he said. "The pellets help improve digestibility and makes the residue more uniform and makes the residue more uniform since it's ground and cattle can't sort it."
"There's a lot of potential application out there for a product like this," he said.
Other researchers on the project were Galen Erickson, professor, as well as research technicians Jana Harding, Curt Bittner and Dirk Burken.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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IN THE NEWS
USGC DDGS Promotion to Southern Mexico Successful
The efforts of the U.S. Grains Council to promote U.S. dried distillers grains with solubles to Southern Mexico have begun to pay off, according to a news article by the Council (http://bit.ly/…).
The Council has been working to promote U.S. DDGS in the underserved region of southern Mexico for several years through presentations, meetings and feeding trials, as well as working with feed distribution companies to commercialize sales of DDGS.
Although Mexico has been the second largest market for U.S. DDGS after China, importing more than 750,000 metric tons in the first half of 2015, the southern portion of the country was targeted because of its untapped potential.
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Those efforts are beginning to pay off as U.S. DDGS is beginning to pay off with sales beginning to flow on a commercial scale. The Council plans to continue its efforts to promote DDGS and increase commercial sized purchases.
Alvaro Coredero, USGC Manager of Global Trade, commented that the Council has generated interest in the product, which resulted in sales of DDGS to pasture grazing that a Council team saw while visiting the feed company Camp, part of the Bachoco group, last week.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
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DTN WEEKLY DDG SPOT PRICES
| CURRENT | PREVIOUS | ||||
| COMPANY | STATE | 9/4/2015 | 8/28/2015 | CHANGE | |
| Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
| Missouri | Dry | $155 | $155 | $0 | |
| Modified | $70 | $70 | $0 | ||
| CHS, Minneapolis, MN (800-769-1066) | |||||
| Illinois | Dry | $140 | $140 | $0 | |
| Indiana | Dry | $140 | $145 | -$5 | |
| Iowa | Dry | $138 | $140 | -$2 | |
| Michigan | Dry | $150 | $148 | $2 | |
| Minnesota | Dry | $125 | $125 | $0 | |
| North Dakota | Dry | $125 | $125 | $0 | |
| New York | Dry | $155 | $155 | $0 | |
| South Dakota | Dry | $125 | $125 | $0 | |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
| Kansas | Dry | $135 | $140 | -$5 | |
| POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
| Indiana | Dry | $140 | $140 | $0 | |
| Iowa | Dry | $125 | $130 | -$5 | |
| Michigan | Dry | $145 | $145 | $0 | |
| Minnesota | Dry | $125 | $130 | -$5 | |
| Missouri | Dry | $140 | $145 | -$5 | |
| Ohio | Dry | $135 | $135 | $0 | |
| South Dakota | Dry | $125 | $130 | -$5 | |
| United BioEnergy, Wichita, KS (316-616-3521) | |||||
| Kansas | Dry | $130 | $135 | -$5 | |
| Wet | $50 | $55 | -$5 | ||
| Illinois | Dry | $150 | $155 | -$5 | |
| Nebraska | Dry | $130 | $135 | -$5 | |
| Wet | $50 | $55 | -$5 | ||
| U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
| Illinois | Dry | $140 | $145 | -$5 | |
| Indiana | Dry | $135 | $140 | -$5 | |
| Iowa | Dry | $120 | $125 | -$5 | |
| Michigan | Dry | $140 | $145 | -$5 | |
| Minnesota | Dry | $120 | $125 | -$5 | |
| Nebraska | Dry | $120 | $120 | $0 | |
| New York | Dry | $150 | $150 | $0 | |
| North Dakota | Dry | $120 | $120 | $0 | |
| Ohio | Dry | $135 | $140 | -$5 | |
| South Dakota | Dry | $120 | $120 | $0 | |
| Wisconsin | Dry | $130 | $135 | -$5 | |
| Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
| Indiana | Dry | $120 | $130 | -$10 | |
| Iowa | Dry | $125 | $135 | -$10 | |
| Minnesota | Dry | $120 | $130 | -$10 | |
| Nebraska | Dry | $125 | $135 | -$10 | |
| Ohio | Dry | $135 | $140 | -$5 | |
| South Dakota | Dry | $115 | $120 | -$5 | |
| Western Milling, Goshen, California (559-302-1074) | |||||
| California | Dry | $190 | $190 | $0 | |
| *Prices listed per ton. | |||||
| Weekly Average | $131 | $135 | -$4 | ||
| 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.
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| VALUE OF DDG VS. CORN & SOYBEAN MEAL | ||||
| Settlement Price: | Quote Date | Bushel | Short Ton | |
| Corn | 9/3/2015 | $3.4775 | $124.20 | |
| Soybean Meal | 9/3/2015 | $316.50 | ||
| DDG Weekly Average Spot Price | $131.00 | |||
| DDG Value Relative to: | 9/4 | 8/28 | 8/21 | |
| Corn | 105.48% | 103.92% | 104.91% | |
| Soybean Meal | 41.39% | 41.81% | 42.01% | |
| Cost Per Unit of Protein: | ||||
| DDG | $5.24 | $5.40 | $5.56 | |
| Soybean Meal | $6.66 | $6.80 | $6.97 | |
| 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 (Aug 28, 2015)
| Dried | Modified | Wet | |
| FOB PLANT PRICES PER TON | |||
| Iowa | 130.00-150.00 | 47.00-70.00 | 38.00-52.00 |
| Minnesota | 130.00-145.00 | 55.00 | 40.00-45.00 |
| Nebraska | 130.00-155.00 | 60.00-75.00 | 40.00-49.00 |
| South Dakota | 120.00-131.50 | 60.00-66.00 | 43.00-46.00 |
| Wisconsin | 135.00-160.00 | 60.00-70.00 | NQ |
| Eastern Corn Belt | 135.00-168.00 | 43.00-68.00 | NQ |
| Kansas | 135.00-164.00 | NQ | 45.00-55.00 |
| Northern Missouri | 150.00-160.00 | NQ | 42.00-47.00 |
| DELIVERED PRICES PER TON | |||
| CIF NOLA | 152.00-170.00 | ||
| Pacific Northwest | 172.00-181.00 | ||
| California | 174.00-185.00 | ||
| Texas Border (metric ton) | 195.00-210.00 | ||
| Lethbridge AB | 145.00 | ||
| Chicago | 145.00-155.00 | ||
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Sep 1, 2015)
Distillers Dry Grains
Rail to California Points 183.00-195.00 unch
FOB Truck to California Points 180.00-197.00 dn 4.00-unch
PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Sep 1, 2015)
Offers for Distillers Dried Grains delivered in September by rail to feed mills in the Pacific Northwest were 3.00 to 8.00 lower from 180.00-185.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were 5.00 to 6.00 lower from 198.00-200.00.
*All prices quoted per ton unless otherwise noted.
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NASS/USDA MONTHLY CO-PRODUCTS PRODUCTION
Dry and Wet Mill, Co-products and Products Produced - United States
May 2015 - July 2015
Sep 1, 2015
Highlights:
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 2.00 million tons during July 2015, up 1 percent from June 2015 and up 6 percent from May 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.14 million tons in July 2015, up slightly from June 2015 but down 7 percent from May 2015.
Wet mill corn gluten feed production was 333.8 thousand tons during July 2015, up 4 percent from June 2015 but down 5 percent from May 2015. Wet corn gluten feed 40 to 60 percent moisture was 315.1 thousand tons in July 2015, up 3 percent from June 2015 but down 3 percent from May 2015.
| Co-products and Products | May 2015 | Jun 2015 | Jul 2015 |
| Dry Mill | tons | ||
| Condensed distillers solubles (CDS-syrup) | 148,637 | 145,244 | 149,927 |
| Corn oil | 118,281 | 120,582 | 125,497 |
| Distillers dried grains (DDG) | 418,448 | 407,259 | 450,829 |
| Distillers dried grains with solubles (DDGS) | 1,892,983 | 1,976,508 | 2,000,851 |
| Modified distillers wet grains (DWG) <65% moisture | 1,228,598 | 1,136,491 | 1,137,600 |
| Modified distillers wet grains (DWG) 40-64% moisture | 417,888 | 367,092 | 350,460 |
| Wet Mill | |||
| Corn germ meal | 69,135 | 63,188 | 68,528 |
| Corn gluten feed | 350,141 | 321,209 | 333,828 |
| Corn gluten meal | 97,295 | 92,237 | 97,130 |
| Corn oil | 53,208 | 51,281 | 53,364 |
| Wet corn gluten feed 40-60% moisture | 325,292 | 306,354 | 315,090 |
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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.) |
| 8/07/15 | 95363 | 9859 | 1826 | 107047 | 5677126 |
| 8/14/15 | 95363 | 9859 | 1826 | 107047 | 5677126 |
| 8/21/15 | 94078 | 9726 | 1801 | 105605 | 5600647 |
| 8/28/15 | 93683 | 9685 | 1793 | 105161 | 5577115 |
*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
*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 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).
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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, or e-mail cheryl.anderson@dtn.com.
(AG)
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