DTN Weekly Distillers Grains Update

Distillers Grains Diets May Lead to Beef That is More Tender

OMAHA (DTN) -- Cattle consuming a diet containing distillers grains may produce beef that is more tender, according to recent research by a University of Nebraska-Lincoln graduate student.

Michael Chao finished his dissertation in May examining the effect of wet distillers grains plus solubles (WDGS) and antioxidant on beef tenderization. Chao is now an assistant professor at the California State University, Chico.

The idea for the research came from a former graduate student who said that while doing her research looking at shelf life and discoloration, she found that cattle fed distillers grains produced meat that was more tender than beef from cattle fed only corn.

Chao told DTN he was intrigued from the standpoint of science.

"Usually when we formulate a diet, we don't consider that any specific type of food would have a big effect on tenderness," he said.

Chao's research involved three studies:

1. Cattle were fed 50% WDGS. The sarcoplasmic reticulum (SR) membrane, free calcium concentration and tenderness were measured.

2. Cattle were fed 30% WDGS and two antioxidants: vitamin E and Agrado Plus (a blend of antioxidants produced by Novus International). Muscle tissue, fatty acid profiles, color and lipid oxidation were measured.

3. Cattle were fed 30% WDGS and the same two antioxidants. But in this study, SR membrane composition, composition and proteolysis (the degradation of muscle) were measured.

Chao found that feeding distillers grains actually improved the proteolysis of the meat.

"What happens in aging is that after an animal is dead, the enzymes start breaking down the muscle tissue. When animals are fed distillers grains, they age faster," he explained.

While no concrete answer exists, Chao said he has a hypothesis as to why distillers grains cause the accelerated breakdown of tissue. Distillers grains are very high in polyunsaturated fatty acids (PUFA). So when cattle consume a lot of distillers grains, PUFA get into the calcium-storing organelle, the part of the muscle cell that stores calcium, and make it less stable.

"When the organelle is less stable, the calcium leaks out from it faster. And the enzymes that degrade the muscle protein depend on calcium," Chao said. "So, the more calcium, the faster the degradation.

"So that's our hypothesis, that feeding distillers grains causes accelerated release of calcium, which causes faster aging," he said.

Chao said that if the theory is correct, it could have beneficial implications for beef producers, as meat that is more tender could be sold at a premium.

"If we can manipulate how we feed animals and make our meat more tender, we can have a tenderness advantage and we will be more competitive in the global market," he said.

Although there is no tenderness factor included in U.S. Department of Agriculture beef grading, Chao said USDA does have a very new tenderness certification that is attracting more and more producers. Meat can be certified as "USDA Tender" and "USDA Very Tender," he said. This new certification is not widely popular yet.

Chao says his graduate adviser, Chris Calkins, will be continuing this line of work through potential grants from the Nebraska Beef Council and the National Cattlemen's Beef Association.

An abstract and link to Chao's dissertation can be found on the UNL website (http://bit.ly/…).

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

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IN THE NEWS

Distillers Grains a Good Choice for Energy in 2015-16

Higher corn futures are now continuing to raise corn-derived energy to higher cost levels. In the coming year, livestock producers may want to consider alternative feeds such as distillers grains, according to an article by Farm and Ranch Guide (http://bit.ly/…).

Alfredo DiCostanzo, from the University of Minnesota Beef Team, said that corn and soy co-products such as distillers grains may be good alternatives to corn grain as energy sources in rations.

With current prices, corn-derived energy for cattle growth or maintenance will be priced at $158 to $176/ton total digestible nutrients (TDN), DiCostanzo said. With western Iowa modified distillers grains priced between $50 to $55/ton and wet distillers grains priced at $35 to $40/ton, energy from those sources costs $125 and $119/ton respectively.

At present, western Iowa modified and wet distillers grains are priced at $50 to $55/ton or $35 to $40/ton, according to the article. Energy derived from either source costs $124 and $119/ton TDN, respectively.

Except for several weeks in July, the value of distillers grains relative to corn had remained above 100% since mid-December 2014, sometimes rising as high as 120% to 130%, according to DTN statistics. Such high values caused some producers to drop distillers grains from their rations, as there was little incentive to choose distillers over corn.

The value of distillers grains relative to corn finally dipped below 100% in mid-September and has hovered around 86% for the past month.

These lower values have attracted interest and caused producers to reconsider distillers grains or increase the inclusion rates in rations.

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

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DTN WEEKLY DDG SPOT PRICES

CURRENT PREVIOUS
COMPANY STATE 10/23/2015 10/16/2015 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $135 $135 $0
Modified $65 $65 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $125 $120 $5
Indiana Dry $122 $115 $7
Iowa Dry $115 $115 $0
Michigan Dry $125 $122 $3
Minnesota Dry $105 $105 $0
North Dakota Dry $120 $115 $5
New York Dry $150 $150 $0
South Dakota Dry $110 $115 -$5
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $130 $125 $5
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $115 $120 -$5
Iowa Dry $110 $110 $0
Michigan Dry $120 $120 $0
Minnesota Dry $105 $105 $0
Missouri Dry $125 $125 $0
Ohio Dry $120 $125 -$5
South Dakota Dry $105 $108 -$3
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $125 $127 -$2
Wet $50 $50 $0
Illinois Dry $135 $133 $2
Nebraska Dry $125 $127 -$2
Wet $50 $50 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $125 $115 $10
Indiana Dry $125 $115 $10
Iowa Dry $115 $105 $10
Michigan Dry $125 $115 $10
Minnesota Dry $112 $100 $12
Nebraska Dry $120 $115 $5
New York Dry $145 $140 $5
North Dakota Dry $130 $115 $15
Ohio Dry $125 $120 $5
South Dakota Dry $110 $105 $5
Wisconsin Dry $120 $115 $5
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $125 $120 $5
Iowa Dry $105 $105 $0
Minnesota Dry $105 $105 $0
Nebraska Dry $115 $115 $0
Ohio Dry $125 $125 $0
South Dakota Dry $105 $105 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $180 $185 -$5
*Prices listed per ton.
Weekly Average $119 $116 $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@dtn.com.

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VALUE OF DDG VS. CORN & SOYBEAN MEAL
Settlement Price: Quote Date Bushel Short Ton
Corn 10/22/2015 $3.7825 $135.09
Soybean Meal 10/22/2015 $307.80
DDG Weekly Average Spot Price $119.00
DDG Value Relative to: 10/23 10/16 10/9
Corn 88.09% 86.50% 83.02%
Soybean Meal 38.66% 36.94% 38.18%
Cost Per Unit of Protein:
DDG $4.76 $4.64 $4.64
Soybean Meal $6.48 $6.61 $6.40
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 (Oct 15, 2015)

Dried Modified Wet
FOB PLANT PRICES PER TON
Iowa 98.00-115.00 50.00-65.00 35.00-37.00
Minnesota 100.00-110.00 55.00 34.00-40.00
Nebraska 105.00-125.00 57.50-65.00 43.00-57.00
South Dakota 98.00-110.00 55.00-63.50 38.00-41.00
Wisconsin 115.00-135.00 50.00-65.00 NQ
Eastern Corn Belt 110.00-138.00 57.00-60.00 NQ
Kansas 120.00-145.00 NQ 45.00-65.00
Northern Missouri 105.00-138.00 NQ 40.00-42.00
DELIVERED PRICES PER TON
CIF NOLA 156.00-162.00
Pacific Northwest 168.00-180.00
California 168.00-180.00
Texas Border (metric ton) 185.00-205.00
Lethbridge AB 145.00
Chicago 130.00-145.00

Dried Distillers Grain: 10% Moisture

Modified Wet Distillers: 50-55% Moisture

Wet Distillers Grains: 65-70% Moisture

CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Oct 20, 2015)

Distillers Dry Grains

  Rail to California Points         170.00-181.00  dn 5.00-up 6.00
  FOB Truck to California Points    183.00         up 3.00-dn 2.00

PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Oct 20, 2015)

Offers for Distillers Dried Grains delivered in October by rail to feed mills in the Pacific Northwest were steady to 4.00 higher from 173.00-180.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were steady to 1.00 higher from 188.00-195.00.

*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

June 2015 - August 2015

Oct 1, 2015

Highlights:

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.94 million tons during August 2015, down 3 percent from July 2015 and down 2 percent from June 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.15 million tons in August 2015, up 1 percent from July 2015 and up 1 percent from June 2015.

Wet mill corn gluten feed production was 343.5 thousand tons during August 2015, up 3 percent from July 2015 and up 7 percent from June 2015. Wet corn gluten feed 40 to 60 percent moisture was 290.7 thousand tons in August 2015, down 8 percent from July 2015 and down 5 percent from June 2015.

Co-products and Products May 2015 Jun 2015 Jul 2015
Dry Mill tons
Condensed distillers solubles (CDS-syrup) 145,244 149,927 155,218
Corn oil 120,582 125,497 121,810
Distillers dried grains (DDG) 407,259 450,829 452,969
Distillers dried grains with solubles (DDGS) 1,976,508 2,000,851 1,943,205
Modified distillers wet grains (DWG) <65% moisture 1,136,491 1,137,600 1,151,047
Modified distillers wet grains (DWG) 40-64% moisture 367,092 350,460 341,837
Wet Mill
Corn germ meal 63,188 68,528 66,563
Corn gluten feed 321,209 333,828 343,476
Corn gluten meal 92,237 97,130 96,072
Corn oil 51,281 53,364 52,514
Wet corn gluten feed 40-60% moisture 214,995 225,675 217,778

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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

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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