Ethanol Producer Magazine
By Holly Jessen March 02, 2012
With ethanol plants slowing production or even idling in response to tight margins and oversupply, a South Dakota State University economics adjunct professor is advising cattle feeders to consider changing their seasonal habits and lock in price or physical supply of distillers grains.
“Right now, I think the slowdown of ethanol plants is likely to make this a year when DDGS prices don’t follow that seasonal trend, but instead stay stable or increase,” Darrell Mark, a former Extension livestock marketing specialist at the University of Nebraska-Lincoln, told EPM. “Another factor is that demand for coproduct feed might increase a little due to winter weather—for cow/calf operations that use the feeds as a supplement, or to the extent that daily intake increases in feedlot cattle.”
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