Just a comment probably more than question. Locally, I can buy DDG, produced right here. The buy product is currently selling for more per ton than I can buy shelled corn. That seems a little screwed up to me. I don't want something for nothing, and I realize everybody needs to make a dollar, but we are talking about a co-op.
DDG $ verses shelled corn
- Thread starter Bigfoot
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jasonleonard
Well-known member
Bigfoot, I am working on a similar dilemma. I was using a lot of by products in some stocker mixes...corn gluten, ddg, soy hull pellets.....and now they are saying that corn is going to the $5 range.
A feedmill owner here told me that some corn coming off already in the deep south is only paying $4.50 a bushel or so to the grower. Maybe someone down there can tell us if that is true?
This is all hard to believe after we saw $9 a bushel corn last fall!
A feedmill owner here told me that some corn coming off already in the deep south is only paying $4.50 a bushel or so to the grower. Maybe someone down there can tell us if that is true?
This is all hard to believe after we saw $9 a bushel corn last fall!
jedstivers
Well-known member
At the close Friday corn was 4.60.
The Midwest is going to have another short crop and have plenty of storage, a lot of corn will be put in the bins and locked up till prices or basis improve.
The Midwest is going to have another short crop and have plenty of storage, a lot of corn will be put in the bins and locked up till prices or basis improve.
OP
OP
Bigfoot
Well-known member
I guess I'm just kinda sour grapes, although I'm trying not to be. For years now, we've all fed what amounts to a byproduct. I haven't fed cracked corn, and sybm in a long time. I've been paying a premium for products, that I'm not sure have any value at all, to anybody but a cattleman. The product that they are producing is subsidized to the gills. Seems like with corn below $5 the cast off should be well under $100 a ton, not higher than the corn it's made from. That's the part the gets my goat. How can I buy corn cheaper than the byproduct? All this ethanol hupla, and how it will help me the beef producer. The corn supply has been fueling these plants for a long time now. We've lined up like good little boys and girls for the DDG. Now that corn is down, I've gotta help drive the price right back up by feeding it.
jedstivers
Well-known member
The key is in how much corn can you get? The ddg came off corn that was much higher priced and even now with futures price way down the basis is still keeping the price up for the plants using it. It's all supply and demand.
jedstivers
Well-known member
Before prices fell so hard they were down this summer put I had byproduct guys trying to get me to lock in at what would equal 7.50 corn when I was looking at a board price of 5.50 for what I was selling. Told them I'd just feed what was coming out of my field.
sim.-ang.king
Well-known member
Ran into the same thing, but it was $8 corn... :roll:jedstivers":3bf5pdbn said:
Yep it is high, saw the price last time I was there. One thing is they are still using last year's corn and I think they value the DDG higher because of protein % is better than corn. The bulk feed I use actually has gone down.Bigfoot":2is1stg8 said:
TexasBred
Well-known member
jasonleonard":2v1ob6ng said:
Texas corn was harvested a month ago and was in the range you mentioned (4.50--$4.80). Weather in the midwest will certainly run the price. I haven't looked at the futures boards lately but early last week corn was over $5 a bushel)
Corn and DDG are two totally different products, corn being low protein (8%), high energy source of starches. DDG is high protein (25% up to 35%) and very low in starches so your really sort of comparing an apple and an orange. A good ration would be a combination of the two along with good source of roughage along with vit. and minerals.
Tex that is the case as far as comparing DDG to shell corn but if you listen to some of the people telling us how ethanol made from corn will not hurt the guy finishing cattle on corn they talk as if there is a 1:1 equivalency when there is NOT!
TexasBred
Well-known member
ABrauny":24ui9460 said:
DDG is no longer "corn". The properties that the feedlot owner wants from "corn" have basically all been removed during processing and you are left with a protein supplement but I assume you're really talking about ethanol usage affecting the availability and price of corn. It does so but really no more so than any demand for corn for all other purposes. The DDG user still needs corn.
