Poor crop conditions lead to US DDGS demand

By | August 10, 2009
Demand for U.S. distillers dried grains with solubles (DDGS) has grown in Canada due to poor crop conditions of barley, cattle producers' main feedstock. Rycom Trading Ltd., the country's largest distillers grains importer, recently purchased approximately 31,500 metric tons of U.S. DDGS. Canada imported 772,000 tons of U.S. DDGS in 2008, up 453,000 tons from 2007, making it the second largest market for U.S. DDGS.

Ryan Slozka, senior trader at Rycom, said they will wait to see if crop conditions improve, "but as long as cattle feeders continue to see good results with feeding U.S. corn DDGS, we anticipate this upward trend in demand to continue."