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Steady Supplies or Stockpiles? Demand for Corn-Based Distillers Grains by the U.S. Beef Industry AgEcon
Clemens, Roxanne; Babcock, Bruce A..
The projected expansion in U.S. corn-based ethanol production over the next several years has created concern that large surpluses of distillers grains may result. Most of the distillers grains currently being produced are consumed by the domestic livestock and poultry industries, especially the beef industry. A recent study by the Center for Agricultural and Rural Development projects that the U.S. ethanol industry could produce between 40 million and 88 million metric tons of distillers grains (dry matter basis) per year by 2011. The proportion of these distillers grains that would need to be consumed by the beef industry to prevent surpluses poses questions about how much distillers grains can be included in beef rations, the effects of feeding...
Tipo: Working or Discussion Paper Palavras-chave: Beef feeding trials; Beef quality; Distillers dried grains; Ethanol co-products; Agribusiness; Livestock Production/Industries; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/6051
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Cross-Hedging Distillers Dried Grains Using Corn and Soybean Meal Futures Contracts AgEcon
Brinker, Adam J.; Parcell, Joseph L.; Dhuyvetter, Kevin C.; Franken, Jason R.V..
Ethanol mandates have led to an increase in the production of distillers dried grains (DDGs), a co-product of ethanol production that is incorporated into livestock rations. As with most competitive industries, there is some level of price risk in handling DDGs, and there is no DDG futures contract available for managing price risk. Commonly, DDGs are hedged using only corn futures. Our results suggest that cross-hedge risk may be reduced by including soybean meal futures in an encompassing cross-hedge strategy. Further, we also conclude soybean meal futures currently may be slightly more effective at reducing risk than in the past.
Tipo: Journal Article Palavras-chave: Cross-hedge; Distillers dried grains; Ethanol; Price risk; Agribusiness; Demand and Price Analysis.
Ano: 2009 URL: http://purl.umn.edu/90654
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