By Todd Neeley
DTN Staff Reporter
OMAHA (DTN) â€” Margins continue to be negative at DTNâ€™s hypothetical Neeley Biofuels 50-million-gallon ethanol plant and have dropped slightly since our January update.
Though the plant is paying less for corn, a drop in the price received for its ethanol has fallen.
On Wednesday, the plant reported a net loss of 31.8 cents per gallon, including debt service. The plant reported a 30.6-cent per-gallon loss in our January update. Margins have improved since August, however, when the plant reported a loss of 43.9 cents per gallon.
Most ethanol plants are not paying debt. If the hypothetical plant was not paying debt, it would be breaking even in this latest update. The plant reported a 1-cent-per-gallon profit in our January update.
The corn price paid dropped from $3.87 per bushel based on the Chicago Board of Trade futures price in March, to $3.80 for this update.