Hottest Commodity of 2016 Is... Chicken Feed

In 2016, chickenfeed emerged as a hot commodity due to a global oilseed shortage, leading to a significant rise in soybean meal prices. Ethanol producers, who create dried distillers grains as a byproduct, have benefited from this demand as it serves as an alternative feed. While some poultry companies like Sanderson Farms are cautious, suspecting market speculation, the demand for alternative feeds has positively impacted ethanol plant margins.

What was identified as the hottest commodity of 2016?

• Silver

• Gold

• Chickenfeed

• Oil

What is the main reason for the increase in chickenfeed prices?

• Increased demand for chicken

• Rise in gold prices

• Global oilseed shortage

• Decrease in chicken population

What alternative feed do ethanol producers offer?

• Rice husk

• Wheat bran

• Dried distillers grains

• Cornmeal

What is the concern of Sanderson Farms regarding the soymeal price rally?

• It will decrease further

• It is speculative and may not last

• It is beneficial for their profits

• It is a permanent change

How do dried distillers grains benefit ethanol plant margins?

• They are sold at a higher price

• They provide a protein-rich feed alternative

• They increase ethanol yield

• They reduce production costs