DTN Weekly Distillers Grains Update
Nebraska Company Develops New Biomaterial Products From DDG
A Nebraska-based company is continuing to develop new and innovative biomaterials using dried distillers grains as a feedstock. Laurel Biocomposites, LLC, located in Laurel, Nebraska, produces powder and pellets that can be blended with thermoplastics in a variety of manufacturing applications, including an environmentally friendly, biodegradable flower pot.
The Bio-Res powder and pellets are an environmentally friendly alternative to traditional petroleum-based resin, hence the company's trademark slogan: "We don't make the plastic. We make the plastic 'GREENER.'" Using DDG as feedstock allowed the company to make a product from a renewable, sustainable resource, and a product that is biodegradable as well.
The products are sold for a wide array of industrial and manufacturing uses, including shipping, lawn and garden products, agricultural uses and construction. The four products now produced are Bio-Res Powder, Bio-Res PE Master Batch Pellets, Bio-Res PP Master Batch Pellets and Bio-Res PLA Master Batch Pellets.
The Bio-Res pellets, for example, reduce crude oil used in petroleum-based resin by about a third of a gallon. In addition, each pound of Bio-Res pellets the company produces sequesters about three-fourths of a pound of carbon, and uses no toxic chemicals in its production.
BIODEGRADABLE FLOWER POTS
One of the newer uses for Bio-Res PLA is for injection molding of planting containers for flowers and vegetables. In fact, greenhouse trials have been completed with annual plants such as tomatoes and peppers which have shown improved plant and root growth when planted in pots made with Bio-Res products compared to traditional polypropylene pots.
SelfEco, LLC, now uses Bio-Res PLA for their SelfEco flower pots. The garden pots are compostable and contain plant food that feeds the roots and producers bigger and healthier plants. No fertilizers or composts are needed, and no gloves are necessary to protect hands from the chemicals found in most fertilizers. Only water is needed.
In addition, because the pots are made from all-natural DDG, they are biodegradable and help reduce the huge amount of petroleum-based pots that end up in landfills every year.
Tim Bearnes, chief executive officer of Laurel BioComposite, LLC, said, "When you put the distillers grains into our product and then on into a plant container, then the plant container actually as it starts to break down, feeds the plant and you get a nutrient release, so you get a fertility effect or a plant growth effect out of the container."
Bearnes said the company's focus right now is in materials that are 100% plant-based.
"We make sustainable products that have unique value," Bearnes said. "When we look at the plant container, for example, we give a consumer a real reason to look at a different product than a traditional petroleum-based flower pot. That has value to consumers, and in the end, we've done a very environmentally sustainable piece with a plant-based compound."
He added that most of the company's work is currently with manufacturers to get markets established and grown.
In 2015, Laurel Biocomposite earned the USDA Certified biobased Product Label for its BioRes PLA with 97% biobased content, Bio-Res PE with 62% biobased content and Bio-Res powder with 100% biobased content, Bearnes said. In addition, the BioRes powder was added to the USDA BioPreferred Program created by the Farm Security and Rural investment Act of 2002 and expanded in the 2008 farm bill to increase the purchase and use of biobased products. Products meeting the USDA BioPreferred requirements carry a label for identification by consumers.
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com
Follow Cheryl Anderson on Twitter @CherylADTN
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NEWS IN BRIEF
China Pork Shortage Spurs Vietnamese Demand for US DDGS
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A pork shortage in China is affecting markets in many countries, but especially in Vietnam, according to an article by the U.S. Grains Council (http://bit.ly/…). As a result, the high Vietnamese demand is spurring record pork prices, as well as a surge in the country's demand for U.S. distillers dried grains with solubles.
The primary protein source in Vietnam is pork, with the country consuming nearly 66 kilograms per capita, much higher than the nearly 50 pounds per capita in the U.S., writes Kevin Roepke, U.S. Grains Council Regional Director for South and Southeast Asia.
With increased environmental regulations, sow herd cullings and poor piglet survival rates, China has been forced to import growing amounts of pork, including an estimated 100,000 metric tons a month, primarily from Europe. The U.S. is also benefiting from China's need for pork, as pork exports to China as of May 19 totaled 68,300 metric tons, more than three times the amount during the same period in 2015.
With hog margins in Vietnam rising as much as $100 per head, Vietnamese hog producers are benefitting from the increase, which is fueling increases in imports of U.S. DDGS. In fact, Vietnam's first quarter imports of DDGS are approximately 26% higher than last year.
The council is assisting DDGS demand by promoting higher inclusions of U.S. DDGS in swine diets to Vietnamese producers, as well as encouraging pelleters to include levels of DDGS as high as possible in feed pellets.
Cheryl Anderson can be reached at Cheryl.anderson@dtn.com.
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DTN WEEKLY DDG SPOT PRICES
CURRENT | PREVIOUS | ||||
COMPANY | STATE | 6/17/2016 | 6/10/2016 | CHANGE | |
Bartlett and Company, Kansas City, MO (816-753-6300) | |||||
Missouri | Dry | $180 | $160 | $20 | |
Modified | $82 | $75 | $7 | ||
CHS, Minneapolis, MN (800-769-1066) | |||||
Illinois | Dry | $180 | $175 | $5 | |
Indiana | Dry | $180 | $175 | $5 | |
Iowa | Dry | $178 | $175 | $3 | |
Michigan | Dry | $180 | $175 | $5 | |
Minnesota | Dry | $165 | $160 | $5 | |
North Dakota | Dry | $165 | $160 | $5 | |
New York | Dry | $175 | $170 | $5 | |
South Dakota | Dry | $165 | $150 | $15 | |
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) | |||||
Kansas | Dry | $165 | $160 | $5 | |
POET Nutrition, Sioux Falls, SD (888-327-8799) | |||||
Indiana | Dry | $180 | $180 | $0 | |
Iowa | Dry | $163 | $165 | -$2 | |
Michigan | Dry | $160 | $145 | $15 | |
Minnesota | Dry | $160 | $155 | $5 | |
Missouri | Dry | $180 | $170 | $10 | |
Ohio | Dry | $180 | $180 | $0 | |
South Dakota | Dry | $155 | $155 | $0 | |
United BioEnergy, Wichita, KS (316-616-3521) | |||||
Kansas | Dry | $135 | $135 | $0 | |
Wet | $40 | $40 | $0 | ||
Illinois | Dry | $190 | $180 | $10 | |
Nebraska | Dry | $135 | $135 | $0 | |
Wet | $40 | $40 | $0 | ||
U.S. Commodities, Minneapolis, MN (888-293-1640) | |||||
Illinois | Dry | $175 | $170 | $5 | |
Indiana | Dry | $180 | $175 | $5 | |
Iowa | Dry | $170 | $165 | $5 | |
Michigan | Dry | $170 | $170 | $0 | |
Minnesota | Dry | $165 | $160 | $5 | |
Nebraska | Dry | $155 | $155 | $0 | |
New York | Dry | $170 | $170 | $0 | |
North Dakota | Dry | $160 | $155 | $5 | |
Ohio | Dry | $180 | $180 | $0 | |
South Dakota | Dry | $155 | $150 | $5 | |
Wisconsin | Dry | $170 | $170 | $0 | |
Valero Energy Corp., San Antonio, TX (402-727-5300) | |||||
Indiana | Dry | $180 | $170 | $10 | |
Iowa | Dry | $160 | $160 | $0 | |
Minnesota | Dry | $155 | $155 | $0 | |
Nebraska | Dry | $170 | $170 | $0 | |
Ohio | Dry | $180 | $180 | $0 | |
South Dakota | Dry | $155 | $155 | $0 | |
Western Milling, Goshen, California (559-302-1074) | |||||
California | Dry | $230 | $230 | $0 | |
*Prices listed per ton. | |||||
Weekly Average | $168 | $164 | $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 | 6/16/2016 | $4.2525 | $151.88 | |
Soybean Meal | 6/16/2016 | $397.70 | ||
DDG Weekly Average Spot Price | $168.00 | |||
DDG Value Relative to: | 6/17 | 6/10 | 6/3 | |
Corn | 110.62% | 107.67% | 102.49% | |
Soybean Meal | 42.24% | 39.66% | 36.34% | |
Cost Per Unit of Protein: | ||||
DDG | $6.72 | $6.56 | $6.08 | |
Soybean Meal | $8.37 | $8.71 | $8.81 | |
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 (June 10, 2016)
Dried | Modified | Wet | |
FOB PLANT PRICES PER TON | |||
Iowa | 147.00-170.00 | 56.00-79.00 | 37.00-47.00 |
Minnesota | 150.00-160.00 | 65.00 | 36.00-55.00 |
Nebraska | 138.00-166.00 | 60.00-90.00 | 41.00-55.00 |
South Dakota | 147.00-155.00 | 65.00-72.00 | 38.00-40.00 |
Wisconsin | 144.00-170.00 | 72.00-80.00 | NQ |
Eastern Corn Belt | 140.00-180.00 | 65.00-90.00 | NQ |
Kansas | 137.00-182.00 | NQ | 45.00-60.00 |
Northern Missouri | 165.00-170.00 | 75.00 | 46.00-48.00 |
DELIVERED PRICES PER TON | |||
CIF NOLA | 195.00-215.00 | ||
Pacific Northwest | 218.00-229.00 | ||
California | 220.00 | ||
Texas Border (metric ton) | 230.00 | ||
Lethbridge AB | n/a | ||
Chicago | 180.00-206.00 |
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue June 14, 2016)
Distillers Dry Grains
Rail to California Points 215.00-231.00 up 5.00-7.00
FOB Truck to California Points 220.00-248.00 up 10.00-23.00
PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue June 14, 2016)
Offers for Distillers Dried Grains delivered by rail to feed mills in the Pacific Northwest were steady to 5.00 higher from 222.00-225.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were also steady to 5.00 higher at
240.00.
*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
March 2016 - April 2016
June 1, 2016
Highlights:
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.70 million tons during April 2016, down 11 percent from March 2016 but up 2 percent from April 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.26 million tons in April 2016, down 4 percent from March 2016 and down 5 percent from April 2015.
Wet mill corn gluten feed production was 306 thousand tons during April 2016, down 11 percent from March 2016 and down 2 percent from April 2015. Wet corn gluten feed 40 to 60 percent moisture was 301 thousand tons in April 2016, up 4 percent from March 2016 but down 4 percent from April 2015.
Co-products and Products | Apr 2015 | Mar 2016 | Apr 2016 |
Dry Mill | tons | ||
Condensed distillers solubles (CDS-syrup) | 140,171 | 137,396 | 130,324 |
Corn oil | 101,614 | 125,510 | 110,439 |
Distillers dried grains (DDG) | 411,664 | 384,739 | 374,750 |
Distillers dried grains with solubles (DDGS) | 1,663,380 | 1,919,507 | 1,701,500 |
Modified distillers wet grains (DWG) <65% moisture | 1,327,808 | 1,320,322 | 1,264,745 |
Modified distillers wet grains (DWG) 40-64% moisture | 387,155 | 456,256 | 426,558 |
Wet Mill | |||
Corn germ meal | 61,922 | 68,140 | 67,530 |
Corn gluten feed | 313,889 | 342,668 | 306,464 |
Corn gluten meal | 89,356 | 91,945 | 84,916 |
Corn oil | 42,998 | 51,415 | 51,455 |
Wet corn gluten feed 40-60% moisture | 314,047 | 290,565 | 301,283 |
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DDG LINKS/RESOURCES
National Organizations:
Distillers Grains Technology Council (www.distillersgrains.org)
Renewable Fuels Association (www.ethanolrfa.org)
U.S. Grains Council (www.grains.org)
National Corn Growers Association (www.ngfa.org)
American Feed Industry Association (www.afia.org)
Government/Regulatory:
National Grains and Feed Association (www.ngfa.org)
Association of American Feed Control Officials (www.aafco.org)
USDA Animal Feed Safety System (http://1.usa.gov/…)
USDA Food Safety Modernization Act (http://1.usa.gov/…)
University Websites:
Corn Processing Coproducts Manual, Nebraska Corn Board and Nebraska Corn Board and the University of Nebraska-Lincoln Institute of Agriculture and Natural Resources Agricultural Research Division Cooperative Extension Division (http://bit.ly/…)
University of Minnesota Biofuels Coproducts in Animal Feed (www.biofuelscoproducts.umn.edu)
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DDG CONFERENCES
*Distillers Grains Technology Council Inc.'s 21th Annual Distillers Grains Symposium
The Distillers Grains Technology Council will hold its 21st Annual Distillers Grains Symposium on May 17-18, 2017, at the downtown Marriott in Indianapolis, IN. 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.
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