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- DTN Headline News
DTN Distillers Grain Weekly Update
Friday, July 22, 2016 7:26AM CDT


By Cheryl Anderson
DTN Staff Reporter

Protein supplementation is important for spring-calving beef cattle grazing low-quality dormant forage, but altering the frequency of that supplementation may affect performance, especially in the last 28 days before calving.

Grazing low-quality dormant forage typically does not allow spring-calving beef cattle to meet their maintenance requirements for protein. The expansion of ethanol production has made distillers dried grains with solubles very popular as a protein supplemental feed.

A team of researchers from Kansas State University recently conducted research on the effects of altering supplementation frequency during the pre-partum period of beef cows grazing dormant native range, according to Justin Waggoner, associate professor and extension specialist for Kansas State University.

The trial expanded on an earlier 2014 KSU study on supplementation frequency of dried distillers grain, to see if DDGS could be fed as infrequently as once a week without affecting cow performance.

"One of the big questions our group has been interested in is: How do we better use distillers grains as a supplement?" Waggoner said.

In that earlier study, the researchers found supplementation frequency did not affect cow performance when DDGS was used. While analyzing the data, fellow researcher John Jaeger noticed some interesting changes in the last 28 days of gestation, so the two decided to see what would happen if, instead of keeping the supplementation frequency intact, they changed it 28 days before the expected calving date.

Waggoner said some operations will increase supplementation frequency as they get closer to calving. This makes delivery more efficient, since producers are out driving, looking for new calves anyway.

"With some producers making that change in going from an infrequent delivery to daily when getting close to calving, we wanted to see how the cows would respond to changing supplementation frequency from daily to every six days and from every six days to daily.

Another reason for the study, Waggoner said, is that producers are continually looking for ways to reduce operating costs and decreasing supplementation frequency may help reduce costs for labor and fuel involved in delivering the DDGS.

"The primary reason we were interested in evaluating the use of DDGS and supplementation frequency was to see if there were ways we could reduce those delivery costs associated with providing a supplement to a cow and increase our understanding of how DDGS may be used as supplement for the cow herd," Waggoner said.

CURRENT FEEDING TRIAL

The more recent study was titled "Effects of Altering Supplementation Frequency During the Pre-Partum Period of Beef Cows Grazing Dormant Native Range."

The trial involved pregnant Angus crossbred cows which were maintained on dormant native range for 88 days until the onset of calving. The cows were assigned randomly to one of four treatments:

1) Dried distiller's grains fed daily (D1).

2) Dried distiller's grains fed once every six days (D6).

3) Dried distiller's grains fed daily for the first 60 days and then once every six days for the remaining 28-day period (D1-D6).

4) Dried distiller's grains fed every six days for the first 60 days then daily for the remaining 28-day period (D6-D1).

The treatments were initiated 100 days prior to the expected onset of calving. Cow body weights and body condition scores were measured every 28 days. Cows that calved before the final weigh day were excluded from the analysis. A total of 232 observations were made in the trial.

RESULTS

The researchers found no differences between those cows supplemented with DDGS daily or those at six-day intervals.

Although the team hypothesized that increasing supplementation frequency from every six days to daily for the 28 days prior to calving would increase dry matter intake, resulting in greater nutrient intake and improved performance, they found increasing supplementation frequency had the opposite effect.

Cows in the D6-D1 group (supplemented every six days for the first 60 days, then daily for the remaining 28 days) had lighter body weights and lower body condition scores than cows in the other treatment groups.

Waggoner explained that when feeding less often, more supplement is delivered at a time. So instead of delivering two pounds of DDGS on a daily basis, a producer would be delivering 12 pounds of DDGS at one time in a feed bunk. Since the cows would likely eat more DDGS after delivered, that could, in effect, disrupt their grazing behavior and result in the lower intake of forage on the day the supplement is delivered.

Also a factor was the fact that cows are creatures of habit, he said.

"One of the things we learned was that as we supplement cows, they become accustomed to a feeding schedule and they get into a routine" he said. "What we did prior to calving was make a change in their routine."

[JW1] Waggoner said the take-home message from the trial is that it is important for producers to maintain their supplementation schedule for pregnant beef cows during the last 28 days of gestation.

"Whatever supplementation schedule you are on, it may in your best interest to maintain that through calving based on the results of this study," he said.

Other KSU researchers on the project were: C. J. McMullen, J. R. Jaeger, K. R. Harmoney and K C. Olson.

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

Follow Cheryl Anderson on Twitter @CherylADTN

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NEWS IN BRIEF

Chicken Council Lobbies for Ethanol Reduction

The National Chicken Council is asking for a reduction in the amount of ethanol produced in the U.S. in 2017, as well as a reassessment of the U.S. biofuel program as a whole, according to comments made by the NCC in response to the U.S. Environmental Protection Agency's proposed Renewable Fuel Standard for 2017 (http://bit.ly/…).

The EPA recommendation was to increase the RFS from 18.11 billion gallons in 2016 to 18.8 billion gallons in 2017. Those recommendations for 2017 are not just fuel market issues, the NCC argued. It said increased ethanol produces increases demand for corn, which impacts all corn users, especially poultry producers who do not benefit from the renewable identification numbers.

Distillers grains, that are used as feed for livestock, are not as valuable to broiler producers, especially with the growing trend of removing corn oil from distillers grains, the NCC said. Poultry producers value the oil as a source of energy in rations. Currently, 85% of all ethanol plants utilize oil extraction, according to the RFA.

The NCC argued that EPA needs to create a more sustainable approach to U.S. fuel policies, as current diversion of corn from feed to fuel uses "exacts a heavy toll on the domestic chicken industry and American consumers." Mike Brown, NCC president, said the proposed 2017 volumes are "overly aggressive and based on faulty assumptions about the fuel market and thus should be further reduced to limit the disruptions to the corn market and nation's feed supply.

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

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DTN WEEKLY DDG SPOT PRICES

CURRENT PREVIOUS
COMPANY STATE 7/22/2016 7/15/2016 CHANGE
Bartlett and Company, Kansas City, MO (816-753-6300)
Missouri Dry $155 $155 $0
Modified $67 $67 $0
CHS, Minneapolis, MN (800-769-1066)
Illinois Dry $140 $145 -$5
Indiana Dry $140 $145 -$5
Iowa Dry $130 $140 -$10
Michigan Dry $140 $150 -$10
Minnesota Dry $125 $125 $0
North Dakota Dry $120 $125 -$5
New York Dry $145 $150 -$5
South Dakota Dry $120 $120 $0
MGP Ingredients, Atchison, KS (800-255-0302 Ext. 5253)
Kansas Dry $130 $140 -$10
POET Nutrition, Sioux Falls, SD (888-327-8799)
Indiana Dry $150 $155 -$5
Iowa Dry $130 $130 $0
Michigan Dry $130 $140 -$10
Minnesota Dry $125 $125 $0
Missouri Dry $145 $145 $0
Ohio Dry $155 $160 -$5
South Dakota Dry $125 $130 -$5
United BioEnergy, Wichita, KS (316-616-3521)
Kansas Dry $127 $135 -$8
Wet $30 $40 -$10
Illinois Dry $150 $160 -$10
Nebraska Dry $127 $135 -$8
Wet $30 $40 -$10
U.S. Commodities, Minneapolis, MN (888-293-1640)
Illinois Dry $155 $155 $0
Indiana Dry $145 $145 $0
Iowa Dry $135 $135 $0
Michigan Dry $145 $150 -$5
Minnesota Dry $130 $130 $0
Nebraska Dry $115 $120 -$5
New York Dry $155 $155 $0
North Dakota Dry $125 $130 -$5
Ohio Dry $145 $145 $0
South Dakota Dry $115 $125 -$10
Wisconsin Dry $140 $140 $0
Valero Energy Corp., San Antonio, TX (402-727-5300)
Indiana Dry $145 $145 $0
Iowa Dry $130 $130 $0
Minnesota Dry $130 $130 $0
Nebraska Dry $125 $125 $0
Ohio Dry $150 $150 $0
South Dakota Dry $125 $125 $0
Western Milling, Goshen, California (559-302-1074)
California Dry $195 $198 -$3
*Prices listed per ton.
Weekly Average $135 $138 -$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 7/21/2016 $3.3425 $119.38
Soybean Meal 7/21/2016 $352.50
DDG Weekly Average Spot Price $135.00
DDG Value Relative to: 7/22 7/15 7/8
Corn 113.09% 106.67% 106.67%
Soybean Meal 38.30% 36.19% 36.19%
Cost Per Unit of Protein:
DDG $5.40 $5.52 $5.52
Soybean Meal $7.42 $8.03 $8.03
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 (July 15, 2016)

Dried Modified Wet
FOB PLANT PRICES PER TON
Iowa 120.00-149.00 49.00-70.00 34.00-40.00
Minnesota 125.00-145.00 55.00 33.00-45.00
Nebraska 115.00-150.00 54.00-66.00 30.00-45.00
South Dakota 120.00-140.00 60.00-68.00 37.00-40.00
Wisconsin 135.00-155.00 60.00-77.00 NQ
Eastern Corn Belt 126.00-160.00 66.00-75.00 NQ
Kansas 125.00-155.00 NQ 45.00-50.00
Northern Missouri 151.00-170.00 67.00 45.00-47.00
DELIVERED PRICES PER TON
CIF NOLA 173.00-191.00
Pacific Northwest 184.00-196.00
California 183.00-193.00
Texas Border (metric ton) 200.00-216.00
Lethbridge AB n/a
Chicago 170.00-179.00

Dried Distillers Grain: 10% Moisture

Modified Wet Distillers: 50-55% Moisture

Wet Distillers Grains: 65-70% Moisture

CALIFORNIA WHOLESALE FEEDSTUFF PRICES (Tue July 19, 2016)

Distillers Dry Grains

  Rail to California Points         190.00-192.00    unch-up 2.00
  FOB Truck to California Points    188.00-196.00    dn 2.00-9.00

PACIFIC NORTHWEST WEEKLY FEEDSTUFFS (Tue July 19, 2016)

Offers for Distillers Dried Grains delivered by rail to feed mills in the Pacific Northwest were 2.00 to 23.00 lower from 181.00-195.00. Offers for distillers dried grains trans-loaded onto trucks and delivered to Willamette Valley dairies were also 2.00 to 23.00 lower from

199.00-210.00.

*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

April 2016 - May 2016

July 1, 2016

Highlights:

Dry mill co-product production of distillers dried grains with solubles (DDGS) was 1.84 million tons during May 2016, up 7 percent from April 2016 but down 1 percent from May 2015. Distillers wet grains (DWG) 65 percent or more moisture was 1.23 million tons in May 2016, down 2 percent from April 2016 and down 10 percent from May 2015.

Wet mill corn gluten feed production was 333 thousand tons during May 2016, up 9 percent from April 2016 but down 4 percent from May 2015. Wet corn gluten feed 40 to 60 percent moisture was 306 thousand tons in May 2016, up 2 percent from April 2016 but down 5 percent from May 2015.

Co-products and Products May 2015 Apr 2016 May 2016
Dry Mill tons
Condensed distillers solubles (CDS-syrup) 148,757 130,324 131,318
Corn oil 117,049 111,077 121,699
Distillers dried grains (DDG) 418,448 374,750 411,467
Distillers dried grains with solubles (DDGS) 1,861,795 1,717,024 1,842,182
Modified distillers wet grains (DWG) <65% moisture 1,368,926 1,264,745 1,234,315
Modified distillers wet grains (DWG) 40-64% moisture 414,956 429,972 425,532
Wet Mill
Corn germ meal 69,274 67,530 63,859
Corn gluten feed 348,355 306,464 332,975
Corn gluten meal 97,139 84,916 88,177
Corn oil 53,208 51,455 50,262
Wet corn gluten feed 40-60% moisture 323,436 301,283 306,424

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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.


[JW1]Cheryl,

I deleted this section primarily because we did not evaluate grazing behavior so it is simply speculation which we science types don’t like to do


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