Originally Posted by Marcos
market forces are such that both forms of DG most likely will remain plentiful, & thus relatively affordable.
This is great news for livestock farmers who (according to this link) use by far the majority of distillers grains produced as cattle feed.
And of course this is also a great deal for "specialty market" buyers, like us.
Clue: If you're considering early order load-your-shed savings deals this fall, and you're considering DG as a part of that package, don't listen to or read corn futures!
As someone who was hauling Gluten for cattle feed for a while I have to disagree. Corn Futures do have an impact on DDGS.
It always seemed to fluctuate with the rise in feed prices coupled by the Europeans who are the biggest consumers of DDGS products for cattle feed. (they won't feed american bio-engineered products directly to their livestock but they'll buy the DDGS with no problems.
). Last year when Europe had their debt crisis and credit dried up for them, the price of DDGS went through the roof.
Farmers used to get DDGS for free, then they started to charge for it once the Ethanol plants seen a demand for it and could also make some money to keep them in the black. It's been a while since I've been to the ethanol plant, but I'm guessing the pricing keeps going up.
At some point I'm guessing the DDGS isn't going to be viable for LCO's when the price hits a certain point.
And I just took a gander at the pricing. It's more than double what it was this time last year. Dry DDGS was at $50 a ton last year, now it's almost tripled. Corn Gluten Meal has almost gone up 5 times also, and that is the high protein stuff that is used for lawn applications.