# Rising Corn Prices Hurt Ethanol Profits

> 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.

- Date: 2018-10-16 · published 2018-10-16T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/62531-rising-corn-prices-hurt-ethanol-profits
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Negative ethanol margins can reduce plant runs and cut DDGS output, while firmer corn buying signals support for corn prices.

## Read by commodity

- CORN: bullish ▲

## Sources

- dtnpf.com: https://www.dtnpf.com/agriculture/web/ag/news/business-inputs/article/2018/10/16/margins-hit-lowest-level-2018-neeley

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