By Cheryl Anderson
DTN Staff Reporter
While waning ethanol production resulted in a marginal increase of distillers grains in December, that run-up in prices seems to have ended with a slight downturn in prices this week.
According to Abby Roberts -- merchandising manager for POET Nutrition in Sioux Falls, South Dakota -- December brought an end-of-month push in prices as some plants hit their EPA Renewable Identification Numbers (RINs) limit, the cap on the number of gallons of ethanol they could produce for the year. Such plants were forced to either slow down or temporarily halt production.
The decreased production tightened supplies slightly, and coupled with the holidays and plants trying to cover order, caused a bit of a bump in prices toward the end of 2015.
Prices, however, fell slightly in the past week after recovering from the slight holiday rise in December, Roberts said.
DTN's weekly spot price average fell only $1 over the Christmas and New Year holidays, from $127 on Dec. 24th to $126 this week.
Domestic demand has remained fairly steady, although not peaking like it sometimes does in winter when more cattle are on feed. There simply has not been enough portions of cattle-producing states have had enough cold, winter weather to push up the usual increase in winter demand.
Roberts said that while some parts of the world have had very mild winters and cattle still out on pasture, other parts have had a very tough and very wet winter. For example, states such as Missouri, Oklahoma and Texas have been hard hit by winter weather in recent weeks.
"Those areas have gotten some unexpected rainfall and snowfall this year," she said. "It's been pretty devastating."
The 7-10 day forecast is calling for cold weather, which might bump up intake a bit, she added.
The rumors of China launching another DDG anti-dumping investigations against the U.S. and the subsequent announcement that China accepted and is considering a petition to do so has not seemed to cause any sizeable disruption in the DDG market, Roberts said.
"I think a lot more people are aware of it than before," she said. "It might be causing a little market bump here and there, but I don't think it's anything out of the ordinary."
In spite of late 2015's slight tightness in supply, Roberts said that supplies are holding out and that most buyers are able to get the product they need.
Barring any unforeseen circumstances, Roberts said she doesn't foresee any huge market movement or changes in prices in coming weeks.
"If we see some dramatic weather swings that would push a lot more cattle on feed, we might see a little bit of a bump," she said. "But everything we're seeing right now indicates prices pretty flat into February."
After the past four or five months when U.S. plants were exporting across the board, livestock producers needing to buy product might as well buy DDG now, she said.
"Based on prices of corn and other competing feed ingredients, I feel like it's definitely a safer time to buy," she said.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
-----------------------------------------------------------------------
IN THE NEWS
Use DDG to Supplement Grazed Corn Residue
Grazing corn residue can cut winter feeding costs, but feed supplements such as distillers grains are often necessary to supplement nutrients, according to an article by Grainnews.com (http://bit.ly/…).
The cornstalks, leaves, husks and some intact ears left after harvest provide about 50 pounds of total residue for grazing beef cows per bushel of corn harvest. Only about 25% of that is useable feed due to weather degradation and cattle wastage.
The feed value of stover is comparable to wheat or barley straw. So to support early to mid-gestation beef cows, nutrient supplements are necessary. Many producers supplement dried distillers grains to supplement energy and protein. Since DDG is 75% TDN and 28% crude protein, producers can add about 3.5 lbs. of DDG to raise a diet with 23 lbs. of residue from 5-8% protein.
Although more costly, distillers grains or molasses-based lick blocks can also be used for cattle grazing on corn stover fields.
Cheryl Anderson can be reached at cheryl.anderson@dtn.com.
Ethanol and Biodiesel Exports Rise
By Katie Micik
DTN Markets Editor
OMAHA (DTN) -- Ethanol exports in November totaled 59 million gallons, 34% lower than the same month in 2014, USDA's Foreign Agricultural Service said.
Canada was the top customer in November, taking 23.2 million gallons. The data is based on U.S. Census Bureau inspection data.
Year-to-date ethanol exports are down 0.3% from a year ago.
U.S. exports of dried distillers grains totaled 939,917 metric tons in November, up 49% from the previous year. 2015 year-to-date exports are up 9.7%.
China remained the largest DDG customer for the U.S. in November, purchasing 132,385 mt. Through November 2015, exports to China are up 44% from the previous year.
U.S. biodiesel exports totaled 10,671.8 mt in November, up 16% from a year ago. 2015 year-to-date exports were up 1% from the previous year. Mexico was the largest buyer, importing 5,558.1 mt.
"Overall, Wednesday's exports will have minimal price impacts," DTN analyst Todd Hultman said. "It is worth noting that China's appetite for distillers grains remains strong in 2015."
Katie Micik can be reached at katie.micik@dtn.com.
-----------------------------------------------------------------------
DTN WEEKLY DDG SPOT PRICES
| | | CURRENT | PREVIOUS | |
| COMPANY | STATE | | 1/8/2016 | 1/1/2016 | 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 | $130 | $135 | -$5 |
| Indiana | Dry | $130 | $135 | -$5 |
| Iowa | Dry | $120 | $120 | $0 |
| Michigan | Dry | $130 | $130 | $0 |
| Minnesota | Dry | $115 | $115 | $0 |
| North Dakota | Dry | $115 | $120 | -$5 |
| New York | Dry | $142 | $140 | $2 |
| South Dakota | Dry | $115 | $115 | $0 |
| MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253) |
| Kansas | Dry | $135 | $135 | $0 |
| POET Nutrition, Sioux Falls, SD (888-327-8799) |
| Indiana | Dry | $133 | $138 | -$5 |
| Iowa | Dry | $118 | $120 | -$2 |
| Michigan | Dry | $132 | $137 | -$5 |
| Minnesota | Dry | $110 | $112 | -$2 |
| Missouri | Dry | $135 | $143 | -$8 |
| Ohio | Dry | $135 | $140 | -$5 |
| South Dakota | Dry | $118 | $120 | -$2 |
| United BioEnergy, Wichita, KS (316-616-3521) |
| Kansas | Dry | $130 | $130 | $0 |
| | Wet | $50 | $50 | $0 |
| Illinois | Dry | $140 | $140 | $0 |
| Nebraska | Dry | $130 | $130 | $0 |
| | Wet | $50 | $50 | $0 |
| U.S. Commodities, Minneapolis, MN (888-293-1640) |
| Illinois | Dry | $130 | $130 | $0 |
| Indiana | Dry | $130 | $132 | -$2 |
| Iowa | Dry | $120 | $122 | -$2 |
| Michigan | Dry | $130 | $132 | -$2 |
| Minnesota | Dry | $115 | $120 | -$5 |
| Nebraska | Dry | $135 | $135 | $0 |
| New York | Dry | $150 | $150 | $0 |
| North Dakota | Dry | $130 | $130 | $0 |
| Ohio | Dry | $135 | $135 | $0 |
| South Dakota | Dry | $115 | $120 | -$5 |
| Wisconsin | Dry | $120 | $120 | $0 |
| Valero Energy Corp., San Antonio, TX (402-727-5300) |
| Indiana | Dry | $125 | $125 | $0 |
| Iowa | Dry | $125 | $115 | $10 |
| Minnesota | Dry | $115 | $110 | $5 |
| Nebraska | Dry | $135 | $135 | $0 |
| Ohio | Dry | $135 | $130 | $5 |
| South Dakota | Dry | $115 | $110 | $5 |
| Western Milling, Goshen, California (559-302-1074) |
| California | Dry | $187 | $187 | $0 |
| *Prices listed per ton. |
| Weekly Average | | $126 | $127 | -$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 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.
-----------------------------------------------------------------------
| VALUE OF DDG VS. CORN & SOYBEAN MEAL |
| Settlement Price: | Quote Date | Bushel | Short Ton |
| Corn | 1/7/2016 | $3.5300 | $126.07 |
| Soybean Meal | 1/7/2016 | | $266.20 |
| DDG Weekly Average Spot Price | | | $126.00 |
| DDG Value Relative to: | 12/25 | 12/18 | 12/11 |
| Corn | 99.94% | 93.46% | 90.55% |
| Soybean Meal | 47.33% | 44.48% | 44.49% |
| Cost Per Unit of Protein: |
| DDG | $5.04 | $5.00 | $4.88 |
| Soybean Meal | $5.60 | $5.92 | $5.77 |
| 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. |
-----------------------------------------------------------------------
USDA MARKET NEWS/DISTILLER GRAINS PRICES
USDA WEEKLY DISTILLERS GRAINS SUMMARY (Dec 31, 2015)
| Dried | Modified | Wet |
| FOB PLANT PRICES PER TON |
| Iowa | 115.00-130.00 | 53.00-65.00 | 34.00-41.00 |
| Minnesota | 110.00-120.00 | 58.00 | 33.00-40.00 |
| Nebraska | 120.00-148.00 | 60.00-75.00 | 48.00-55.00 |
| South Dakota | 120.00-125.00 | 62.00-67.00 | 39.00-40.00 |
| Wisconsin | 115.00-123.00 | 50.00-60.00 | NQ |
| Eastern Corn Belt | 125.00-145.00 | 57.00-62.00 | NQ |
| Kansas | 140.00-165.00 | NQ | 50.00-63.00 |
| Northern Missouri | 135.00-150.00 | NQ | 42.00-49.00 |
| DELIVERED PRICES PER TON |
| CIF NOLA | 158.00-167.00 | | |
| Pacific Northwest | 176.00-188.00 | | |
| California | 185.00-190.00 | | |
| Texas Border (metric ton) | 195.00-210.00 | | |
| Lethbridge AB | 160.00 | | |
| Chicago | 142.00-150.00 | | |
Dried Distillers Grain: 10% Moisture
Modified Wet Distillers: 50-55% Moisture
Wet Distillers Grains: 65-70% Moisture
CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue Jan 5, 2016)
Distillers Dry Grains Points
Rail to California 185.00-195.00 up 10.00
FOB Truck to California Points 195.00-196.00 up 15.00-10.00
PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue Jan 5, 2016)
Offers for Distillers Dried Grains delivered in October by rail to feed mills in the Pacific Northwest were steady to 3.00 lower from 183.00-188.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were 1.00 to 2.00 lower from 201.00-203.00.
*All prices quoted per ton unless otherwise noted.
-----------------------------------------------------------------------
NASS/USDA MONTHLY CO-PRODUCTS PRODUCTION
Dry and Wet Mill, Co-products and Products Produced - United States
October 2015 - November 2015
Jan 4, 2016
Highlights:
Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.94 million tons during November 2015, down 1 percent from October 2015 but up 9 percent from November 2014. Distillers wet grains (DWG) 65 percent or more moisture was 1.13 million tons in November 2015, down 8 percent from October 2015 and down 17 percent from November 2014.
Wet mill corn gluten feed production was 322.7 thousand tons during November 2015, down 1 percent from October 2015 but up 9 percent from November 2014. Wet corn gluten feed 40 to 60 percent moisture was 289.2 thousand tons in November 2015, down 3 percent from October 2015 and down 9 percent from November 2014.
| Co-products and Products | Nov 2014 | Oct 2015 | Nov 2015 |
| Dry Mill | | tons | |
| Condensed distillers solubles (CDS-syrup) | 132,236 | 143,025 | 124,855 |
| Corn oil | 107,190 | 127,938 | 130,938 |
| Distillers dried grains (DDG) | 419,028 | 438,027 | 413,019 |
| Distillers dried grains with solubles (DDGS) | 1,770,904 | 1,953,817 | 1,935,499 |
| Modified distillers wet grains (DWG) <65% moisture | 1,354,729 | 1,222,032 | 1,130,071 |
| Modified distillers wet grains (DWG) 40-64% moisture | 472,819 | 386,304 | 425,499 |
| Wet Mill | | | |
| Corn germ meal | 66,384 | 62,784 | 67,645 |
| Corn gluten feed | 295,030 | 326,055 | 322,741 |
| Corn gluten meal | 89,593 | 83,213 | 84,505 |
| Corn oil | 40,980 | 48,676 | 53,597 |
| Wet corn gluten feed 40-60% moisture | 317,273 | 296,954 | 289,171 |
-----------------------------------------------------------------------
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)
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
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\AG)
© Copyright 2016 DTN/The Progressive Farmer. All rights reserved.