News & Resources

DTN Distillers Grain Weekly Update

20 Nov 2015

By Cheryl Anderson
DTN Staff Reporter

OMAHA (DTN) -- Swine producers don't need to worry as much about sulfur concentrations from distillers grains in feed rations, according to research done at the University of Illinois.

According to Hans H. Stein, professor of animal science at the University of Illinois, Urbana-Champaign, pigs are able to tolerate higher levels of sulfur than previously thought.

In the past, swine producers were cautious about feeding dried distillers grains with solubles, because of their tendency to be high in sulfur. Although there were recommendations for cattle stating that no more than 0.4% of the dry matter in the diet should be sulfur, there was no data published on tolerance of sulfur in pigs.

Further research showed that swine producers could get close to 0.4% in diets, which lead researchers to wonder if pigs were as sensitive to sulfur as cattle.

"We conducted several experiments and were concerned about two things: if pigs could tolerate sulfur and if they would eat it," Stein said. "We wondered if maybe high sulfur would reduce the palatability so the pigs would not eat as much."

Researchers conducted palatability studies and growth experiments with both weaning pigs and growing pigs. In the end, there was no difference found in the palatability and growth performance between feeding a diet containing very low sulfur and one with very high sulfur.

Researchers also wondered what happens to the sulfur the pig is consuming and whether the sulfur would show up in the animal's tissue and meat sold to consumers.

Previous studies had determined that pigs can consume diets containing up to 0.38% sulfur without affecting palatability or growth performance. So a feeding trial was formulated using two diets: one with DDGS containing 0.3% sulfur and a second diet with calcium sulfate added to simulate a high-sulfur DDGS at 0.9%. The sulfur content in the total ration for both diets was at 0.14% and 0.38%, respectively -- lower because the DDGS was mixed with other feedstuffs.

The researchers found carcass length, 10th-rib fat depth, loin area and fat-free lean were the same regardless of the diets pigs were fed. Also, the sulfur content did not have any effect on organ weights, loin quality, loin pH, drip loss, loin subjective color, marbling or firmness.

The most important discovery came was when tissue samples from the pigs fed high sulfur diets showed the animals were able to regulate sulfur in their bodies by increasing or reducing urinary excretion in response to the change in sulfur intake.

"Pigs will absorb the extra sulfur, but then they will excrete it in the urine afterwards," Stein said. "So you don't get pork chops or bacon with high sulfur concentrations, or anything like that."

Stein stressed producers need to keep in mind that pigs can get sulfur from other sources besides feed; it is sometimes found in groundwater in certain areas.

"Obviously, if you have high sulfur in the water and then you have high sulfur in the DDGS, then you can compound," he said. "But based on our research at least, I would say that within reasonable limits, pigs tolerate sulfur very well. Pigs are probably easier to work with than cattle in that regard."

Stein said there were some notable differences in levels of sulfur in DDGS from various sources and producers should be aware of the sulfur content in the DDGS they purchase.

"There are some sources of DDGS that are very low in sulfur, but there are also sources that are very high," he said. "Typical values range from 0.3% up to about 1% or a little higher in DDGS."

The research tested up to 0.38% sulfur in the final diet, but Stein pointed out that is probably about as high as producers would get in the diets when feeding DDGS with higher sulfur levels.

"Now, if you combine that with high sulfur water, we don't know what happens because we didn't test that," he said. "If you get into sulfur problems, I don't think it will be because of DDGS. It will be because of either other ingredients that are high in sulfur, or because of water that is high in sulfur."

Whether or not producers choose DDGS will still likely be determined by economics, Stein said, adding that the research demonstrated that producers do not need to be concerned about the 0.3% to 0.9% sulfur in DDGS. Those levels really have no impact on pig performance, carcass quality or product quality, he said.

The project, "Effects of dietary sulfur and distillers dried grains with solubles on carcass characteristics, loin quality and tissue concentrations of sulfur, selenium and copper in growing -- finishing pigs," was published in the Journal of Animal Science.

For anyone wanting more information, the full text is available online (http://bit.ly/…).

Other researchers on the project were: Beob Gyun Kim of Konkuk University in Seoul, South Korea; Dong Yong Kil of Chung-Ang University in Anseong, South Korea; Donald Mahan of The Ohio State University; and Gretchen Hill of Michigan State University.

The National Pork Board and the Nutritional Efficiency Consortium both provided funding for the project.

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

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IN THE NEWS

Alliance Develops Sample Food Safety Plan, Curriculum

A group of ethanol industry experts are working on a sample food safety plan and educational curriculum for ethanol plants to use to comply with regulations set in the final rule of the new Food Safety Modernization Act, which was released in September, according to an article by Ethanol Producer (http://bit.ly/…).

The U.S. Food and Drug Administration calls FSMA "the most sweeping reform of food safety laws in more than 70 years." A group of 10 industry exports has been working to understand the details of the FSMA final rule, as well as the requirements for every facility to adopt current good manufacturing practices (CGMPs) and extensive recordkeeping. According to the Ethanol Producer, the group worked to "pin down just what producers will need to do to ... (ensure) distillers grains and corn oil bound for feed are in compliance."

Since defining CGMPs and identifying hazards that need controls will be an enormous task, the ethanol working group, a subgroup of the Food Safety Preventive Controls Alliance, is writing a sample food safety plan for the ethanol industry. The safety plan will be used as an example in training sessions to show what a plant's CGMPs, hazard analysis and preventive controls might look like.

David Fairfield, vice president of the National Grain and Feed Association, said the safety plan is just an example, adding that FDA expects "each facility to develop a plan that is unique to its own operation."

Once completed, the goal of the alliance is to have the curriculum in place by May. All the materials will be available at no cost on the alliance website.

Other committees are developing hazard guidance and curriculum, including a 20-hour animal food curriculum. Courses will be scheduled once the curriculum is finished and approved by FDA.

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

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DTN WEEKLY DDG SPOT PRICES

CURRENT PREVIOUS
COMPANY STATE 11/20/2015 11/13/2015 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 $125 $0
Indiana Dry $128 $125 $3
Iowa Dry $122 $120 $2
Michigan Dry $128 $130 -$2
Minnesota Dry $110 $110 $0
North Dakota Dry $110 $110 $0
New York Dry $130 $130 $0
South Dakota Dry $115 $118 -$3
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $135 $135 $0
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $120 $120 $0
Iowa Dry $110 $115 -$5
Michigan Dry $130 $130 $0
Minnesota Dry $110 $115 -$5
Missouri Dry $130 $135 -$5
Ohio Dry $125 $125 $0
South Dakota Dry $115 $115 $0
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $130 $128 $2
Wet $50 $50 $0
Illinois Dry $140 $140 $0
Nebraska Dry $130 $128 $2
Wet $50 $50 $0
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $130 $125 $5
Indiana Dry $130 $125 $5
Iowa Dry $115 $115 $0
Michigan Dry $125 $125 $0
Minnesota Dry $115 $115 $0
Nebraska Dry $130 $130 $0
New York Dry $145 $150 -$5
North Dakota Dry $130 $130 $0
Ohio Dry $125 $130 -$5
South Dakota Dry $120 $115 $5
Wisconsin Dry $117 $117 $0
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $125 $125 $0
Iowa Dry $110 $110 $0
Minnesota Dry $105 $105 $0
Nebraska Dry $140 $140 $0
Ohio Dry $135 $135 $0
South Dakota Dry $105 $105 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $180 $180 $0
*Prices listed per ton.
Weekly Average $123 $123 $0
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 11/19/2015 $3.6425 $130.09
Soybean Meal 11/19/2015 $286.60
DDG Weekly Average Spot Price $123.00
DDG Value Relative to: 11/20 11/13 11/6
Corn 94.55% 95.14% 91.96%
Soybean Meal 42.92% 42.21% 41.50%
Cost Per Unit of Protein:
DDG $4.92 $4.92 $4.92
Soybean Meal $6.03 $6.13 $6.24
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 (Nov 13, 2015)

Dried Modified Wet
FOB PLANT PRICES PER TON
Iowa 110.00-121.00 53.00-60.00 35.00-41.00
Minnesota 110.00-121.00 55.00 32.00-40.00
Nebraska 120.00-135.50 55.00-71.00 47.00-55.25
South Dakota 107.00-115.50 60.00-62.50 35.00-40.00
Wisconsin 115.00-120.00 50.00-60.00 NQ
Eastern Corn Belt 118.00-150.00 55.00-60.00 NQ
Kansas 130.00-165.00 NQ 48.00-60.00
Northern Missouri 130.00-140.00 NQ 40.00-44.00
DELIVERED PRICES PER TON
CIF NOLA 155.00-160.00
Pacific Northwest 169.00-178.00
California 172.00-180.00
Texas Border (metric ton) 190.00-205.00
Lethbridge AB 150.00
Chicago 138.00-146.00

Dried Distillers Grain: 10% Moisture

Modified Wet Distillers: 50-55% Moisture

Wet Distillers Grains: 65-70% Moisture

CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Nov 17, 2015)

Distillers Dry Grains

 Rail to California Points 180.00-183.00 unch
 FOB Truck to California Points 178.00-186.00 unch

PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Nov 17, 2015)

Offers for Distillers Dried Grains delivered in October by rail to feed mills in the Pacific Northwest were 1.00 to 2.00 lower from 177.00-178.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were 1.00 to 2.00 lower from 193.00-193.00.

*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

July 2015 - September 2015

Nov 2, 2015

Highlights:

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.91 million tons during September 2015, down 3 percent from August 2015 and down 5 percent from July 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.17 million tons in September 2015, up 1 percent from August 2015 and up 2 percent from July 2015.

Wet mill corn gluten feed production was 312.5 thousand tons during September 2015, down 9 percent from August 2015 and down 6 percent from July 2015. Wet corn gluten feed 40 to 60 percent moisture was 286.6 thousand tons in September 2015, down 1 percent from August 2015 and down 9 percent from July 2015.

Co-products and Products Jul 2015 Aug 2015 Sept 2015
Dry Mill tons
Condensed distillers solubles (CDS-syrup) 149,927 156,262 156,935
Corn oil 125,497 121,810 117,622
Distillers dried grains (DDG) 450,829 452,969 420,458
Distillers dried grains with solubles (DDGS) 2,000,851 1,961,145 1,907,470
Modified distillers wet grains (DWG) <65% moisture 1,137,600 1,151,297 1,165,422
Modified distillers wet grains (DWG) 40-64% moisture 350,460 341,837 369,209
Wet Mill
Corn germ meal 68,528 66,563 56,106
Corn gluten feed 333,828 343,476 312,543
Corn gluten meal 97,130 96,072 86,522
Corn oil 53,364 52,514 42,605
Wet corn gluten feed 40-60% moisture 315,090 290,652 286,615

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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 20th Annual Distillers Grains Symposium

The Distillers Grains Technology Council will hold its 20th Annual Distillers Grains Symposium on May 18-19, 2015 at the Hyatt Regency at The Arch in St. Louis, 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.

(CZ/SK)