Seamon to Discuss DDGS Futures at Export Exchange 2010

The export future of U.S. distiller’s dried grains with solubles (DDGS) looks promising, according to Fred Seamon, associate director with the CME Group.

“We believe the industry is well positioned and the DDGS export market should continue to play an important role in the world feed grain market,� Seamon said.

Scheduled to address the attendees at the Export Exchange 2010, Seamon will discuss the U.S. DDGS export market and risk management tools for the industry, as they pertain to the anticipated growth of international customer demand and economic growth in some countries.

The Export Exchange 2010 is an international conference focused around the export of U.S. DDGS and coarse grains. More than 170 international buyers and end-users will gather in Chicago Oct. 6-8, 2010, to meet with U.S. suppliers and producers of high protein feed grains and ingredients. Co-sponsored by the U.S. Grains Council and the Renewable Fuels Association, the conference will detail current opportunities and constraints as they relate to the export of U.S. DDGS and coarse grains.

“Exporters will need to increase the size of their global grain trade while dealing with expanded competition from traditional and non-traditional exporters,� Seamon said. “Exporters will need to be able to handle these changes while managing risk effectively.�

Seamon also noted the increasing necessity of DDGS in the world grain market.

“DDGS will likely play an increasingly important role in protein production around the world,� he said. “Hundreds of millions of people have moved from poverty to relative middle-class status over the past 20 years. As growth continues, so too will demand for feed grain products.�

Seamon works in commodity research and product development at the CME Group, investigating the feasibility of new commodity futures contracts and writing trading rules for new commodity futures.