# Rising Ethanol Stocks Put Pressure on Profit Margins Despite Rise in Credits

> DTN's hypothetical 50-million-gallon Neeley Biofuels plant reported a net loss of 31.8 cents per gallon including debt service, a slight improvement from the January update. The plant's corn cost fell to $3.80 per bushel and its ethanol rack price dropped to $1.40 per gallon. DDG prices held steady at $140 per ton.

- Date: 2020-02-20 · published 2020-02-20T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/54599-rising-ethanol-stocks-put-pressure-on-profit-margins-despite-rise-in-credits
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

Persistent ethanol losses and rising stocks weaken ethanol plant corn demand at the margin, which is mildly bearish for corn. Steady DDGS prices leave feed buyers with no near-term relief or squeeze.

## Read by commodity

- CORN: bearish ▼
- DDGS: neutral

## Sources

- dtnpf.com: https://www.dtnpf.com/agriculture/web/ag/news/article/2020/02/20/rising-ethanol-stocks-put-pressure

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