Ethanol profit margins at DTN's hypothetical 50-million-gallon plant in South Dakota hit their lowest levels of 2018 this week after corn prices dramatically increased in the past month, reports The Progressive Farmer.
Including debt service and depreciation, Neeley Biofuels reported a net loss of 34.5 cents/gallon of ethanol produced. However, assuming most corn ethanol plants today are free and clear of debt and depreciation, the net-margins picture is much different.
DTN Analyst Rick Kment said profits have continued to fall as corn-buying activity has been on the rise.
"Ethanol plant profitability levels continue to erode with active buyer support seen in the corn market increasing overall production costs of the plant," he told The Progressive Farmer.
