Loading…
A hypothetical 50 million gallon South Dakota ethanol plant modeled by DTN continues to lose money, with a 34.4 cent per gallon loss including debt service. Corn costs fell 5 cents to $3.73 per bushel while ethanol held at $1.37 per gallon, and industry contacts expect no quick recovery.
Persistent negative margins signal that ethanol plants are under pressure to cut production, which would reduce corn demand. The effect on corn prices is modest because this is a model result rather than a market event.
dtnpf.comTodd NeeleyNov 7, 2018Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
