Platts has started publishing price assessments for dried distillers grains with solubles (DDGS), the energy and commodities information provider said last week.
DDGS, a byproduct from the production of ethanol through the dry-mill method, is increasingly being used as animal feed in the US and worldwide.
The company’s move is in response to the market’s demand for an independent source of pricing data for the growing DDGS-as-feed market, it said, noting that the US produced more than 340 million barrels of ethanol in 2014, 90% of which through the dry-mill process. DDGS exports amounted to more than 11 million tonnes last year, with buying interest coming mainly from China and broader Asia, according to the announcement.
The firm has launched two DDGS references, one focused on the domestic price and the other on the export price. The former reflects values for the Midwest, which is the US’s main corn, wheat and grains producing region, while the latter shows values at the US Gulf Coast.
"We believe the demand for feed substances in the U.S. and worldwide will only grow over time," said Sophie Byron, Platts managing editor, Americas agriculture.
The new price references complement Platts' ethanol assessments.
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