# Hypothetical Ethanol Plant Margins Improve Despite Higher Corn, Lower Fuel Price

> DTN's hypothetical 50-million-gallon South Dakota ethanol plant improved its margin since September, reporting a 30.6-cent per-gallon loss including debt service. The gain came from a higher DDGS price, which rose from $130 to $140, despite a higher corn price and a lower ethanol rack price.

- Date: 2020-01-06 · published 2020-01-06T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/55075-hypothetical-ethanol-plant-margins-improve-despite-higher-corn-lower-fuel-price
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md)

## Why it matters

A higher DDGS price improves ethanol plant economics and supports DDGS values for feed buyers, even as corn costs rise.

## Read by commodity

- CORN: neutral
- DDGS: bullish ▲

## Sources

- dtnpf.com: https://www.dtnpf.com/agriculture/web/ag/news/business-inputs/article/2020/01/06/hypothetical-ethanol-plant-margins
- proag.com: https://www.proag.com/news/hypothetical-ethanol-plant-margins-improve-despite-higher-corn-lower-fuel-price/

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