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Trade War Shifts Feed for U.S. Hogs from DDGs

Downturn in U.S. ethanol output are tightening supplies of distillers’ dried grains

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A steep downturn in U.S. ethanol output linked to the trade war with China is raising costs for American farmers who feed a byproduct of the corn-based biofuel to hogs, cattle and chickens.

Reuters reports sales of the feed, known as distillers’ dried grains, or DDGs, were one of the bright spots for ethanol makers such as Green Plains Inc., Valero Energy Corp. and Pacific Ethanol Inc. after China all but stopped buying corn ethanol, contributing to oversupply.

But now cuts to ethanol production are tightening supplies of DDGs and raising prices paid by livestock farmers. Many are turning to other feeds including soybean meal, the price of which eased as China halted imports of American soybeans.

Read the full report at Reuters.

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