USA: Ethanol margins improve slightly

Falling corn prices and rising ethanol prices have given a shot in the arm to DTN’s hypothetical 50-million-gallon plant based in South Dakota. However, the plant continues to see double-digit losses. In the past year, ethanol companies have sold plants and others have been cutting costs, including laying off employees, in an attempt to survive what has been a long downturn in the industry.

The latest look at the hypothetical plant based in South Dakota shows the negative margins have moved little since our last update in February. Losses have modified, however, since hitting some of their lowest levels of the past year in December 2018. The plant currently is showing a 28.3-cent loss, a slight improvement from February’s 31.9 cents. This number includes continued debt service.