Platts, a global provider of energy and commodities information, has began publishing price assessments for a key ethanol coproduct increasingly used as animal feed in the United States and globally.&nbsp;
The new references are for dried distillers grains with solubles (DDGS) and reflect values for the Midwest, the nation&rsquo;s key corn, wheat and grains producing region, and exportable values at the U.S. Gulf Coast.&nbsp;
&ldquo;With U.S. ethanol production beyond 340 million barrels in 2014, 90 percent of which was produced through the dry-mill process, it&rsquo;s easy to understand the market&rsquo;s heightened desire for an independent source of pricing data for the burgeoning DDGS-as-feed market,&rdquo; said &nbsp;Sophie Byron, Platts managing editor, Americas agriculture.
&nbsp;&ldquo;Platts&rsquo; long experience in price discovery processes in oil and refined products and the expertise in sugar as a biofuel that we gained with our 2012 acquisition of sugar specialty company Kingsman, uniquely positions us to answer the market&rsquo;s call.&rdquo;
&nbsp;Exports of DDGS, increasingly used as feed for beef and dairy cattle, totaled more than 11 million metric tons in 2014, with buying interest concentrated in China and broader Asia.&nbsp;
&nbsp;&ldquo;We believe the demand for feed substances in the U.S. and worldwide will only grow over time,&rdquo; Byron said. &ldquo;By having two assessments, one focused on the domestic price and the other on the export price, we&rsquo;ll be providing buyers, sellers, traders and brokers the pricing insight they need to make better business decisions.&rdquo;
&nbsp;The assessments are:
- &nbsp;&nbsp;Platts DDGS FOB Chicago: the physical spot market value of DDGS free on board (FOB) as delivered by 25-short-ton truck or rail-head to Channahon, Illinois, for the next week's delivery.&nbsp;
- &nbsp; &nbsp;Platts DDGS CIF New Orleans: the physical spot market value of DDGS&nbsp; 1500-short tons&nbsp; cost, insurance and freight as delivered on a barge to New Orleans and having loaded any period over the front month. &nbsp;
Both assessments reflect export-quality DDGS with a minimum protein content of 25 percent, color of 50, (a colorimetric measurement of nutritional value after exposure to heat), fat of 6 percent and a moisture level of 10 to 12 percent.
&ldquo;We have been in discussions with the industry and marketplace about these assessments for more than a year and they&rsquo;re the latest in a suite of spot market references we&rsquo;ve designed to improve the transparency of price formation in the ethanol production chain,&rdquo; said Andrew Goodwin. Platts vice president and general manager of agriculture, metals and petrochemicals.&nbsp;&nbsp;
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Platts is publishing price assessments for distillers dried grain solubles (DDGS).

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Platts, a global provider of energy and commodities information, has began publishing price assessments for a key ethanol coproduct increasingly used as animal feed in the United States and globally. 

Platts publishes price assessments for DDGS

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