What a difference a couple of weeks make. We’ve gone from corn costing over $6.50/bu to local bids under $5.50/bu. The hog market continues to avoid a traditional fall price decline and crop harvest is in full swing across the Midwest.
Use of DDGS in swine diets has become almost universal in the Midwest. For much of the summer, DDGS sold for prices at or below 80% of price of corn. However, with the recent drop in corn price, the fixed use of DDGS in many diets has kept that ingredient price stable, with DDGS still selling for $185-195/ton.
I did some quick math this morning and depending on the nutrient loadings you use for DDGS in your ration calculator, corn is coming back into diets. For many production systems with several toll mills delivering diets, it is not easy to manipulate diets in response to this price change. However, for many small to mid-sized producers who are sourcing cash ingredients, it may be time to re-evaluate the inclusion levels of DDGS in your diets. At least short term, it may be that corn is a better priced ingredient.