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DTN's hypothetical 50-million-gallon South Dakota ethanol plant reported its lowest margins of 2018 after corn prices rose sharply over the past month. Net margins including debt service and depreciation showed a loss of 34.5 cents per gallon, and operating margins also turned negative for the first time this year.
Analysts said active corn buying is raising production costs.
Negative ethanol margins can reduce plant runs and cut DDGS output, while firmer corn buying signals support for corn prices.
dtnpf.comTodd NeeleyOct 16, 2018Not 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.
