# Increasing Fuel Demand Helps Ethanol Plants to Improve Profit Margins

> Dry-mill ethanol plant margins have improved sharply since May as rising summer travel and reopening states lifted gasoline demand. DTN's hypothetical South Dakota plant posted a 4-cent-per-gallon net profit versus a 16.1-cent loss in May, with ethanol rack prices up to $1.63 per gallon.

- Date: 2020-07-10 · published 2020-07-10T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/52107-increasing-fuel-demand-helps-ethanol-plants-to-improve-profit-margins
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Better ethanol margins support plant run rates and corn grind, which supports corn demand and DDGS output, while higher gasoline demand points to firmer energy prices.

## Read by commodity

- WTI: bullish ▲
- CORN: bullish ▲
- DDGS: bullish ▲

## Sources

- dtnpf.com: https://www.dtnpf.com/agriculture/web/ag/news/business-inputs/article/2020/07/10/increasing-fuel-demand-helps-ethanol

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.