A method for producing amorphous insoluble cellulosic fiber gel, preferably in the form of a dietary fiber gel, and an aqueous product comprising soluble cellulose for use as an adhesive component from the fiber-containing by-products from a variety of grain manufacturing processes is described. The treatment of the fiber residue in the presence of alkali and mechanical shear produces a slurry containing amorphous insoluble cellulosic fiber. The slurry can be further processed to improve color attributes. The amorphous insoluble cellulosic fiber can be separated from the slurry to produce a dietary fiber gel. Water and solute are separated from a liquid component of the slurry. The solute can be yielded as an aqueous product that contains soluble cellulose and can be used as an adhesive component. The recovered water can be recycled within the method so as to reduce waste disposal.