DDG Futures Contract could be promising for ethanol, livestock industries

Written by Wauneta Breeze (Nebraska)
Wednesday, 17 March 2010 17:07

The creation of a futures contract for distillers dried grain offers a new risk management tool that livestock feeders and ethanol producers should evaluate for future use, a University of Nebraska-Lincoln Extension livestock marketing specialist says.

The contracts announced in February by CME Group will provide the opportunity for both ethanol and livestock feeding industries to hedge against adverse price moves in distillers grains markets, Darrell Mark said.

“The creation of the futures contract is exciting for the industry,” Mark said. “Now, both ethanol producers and livestock feeders can more effectively hedge their gross profit margins.”

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