January 3, 2017
Today, the U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) plans to enhance the weighted average corn gluten meal and corn gluten feed pellet values reported on the Corn Belt Weekly Feedstuffs. This enhancement will convert to using a simple average of all values within the reported range and cease using a mid-point value of the lowest and highest values. This new simple average calculation will be more representative of where the majority of corn gluten meal and corn gluten feed pellets are trading.
Currently, AMS calculates a weighted average value per ton. Weighted average prices are based on the movement volume for each transportation method (i.e., truck, rail, or barge). Percentages for mode of transportation are provided monthly by the Corn Refiners Association, through a third-party consulting company. This new calculated value will be referred to as the “Comprehensive Value,” instead of the “Weighted Average.”
Working with the industry, AMS tracked the corn gluten meal and corn gluten feed pellet values using the simple average calculation alongside the mid-point value. Both industry and AMS feel a simple average more closely reflects the value of the commodity than does a mid-point value. These historical comparison data will be made available upon request. The following changes take effect today:
- Report basis and transportation method: Wholesale Values. FOB Production Point. Barge, Truck, and Rail dollars per ton.
- Change the label of the calculated value from “Weighted Average” to “Comprehensive Value.”
- Convert to using a simple average of all values within the reported range and cease using a mid-point value of the lowest and highest value.
AMS is committed to providing relevant market information that accurately depicts the evolving changes in the industry. The updated corn gluten meal and corn gluten feed pellet values will provide a more insightful and comprehensive value, thus enhancing the value of the feedstuff information published each week.
If you have any questions or would like to request historical data, contact Mike Lynch, Livestock, Poultry, and Grain Market News Director, at (202) 720-4846; Russ Travelute, Field Chief, or Jodie Pitcock, Market Reporting Supervisor, at (816) 676-7000.
Livestock, Poultry, and Seed Program