The estimated production margin for a typical US Midwest dry-mill ethanol plant for the week ended Friday rose 16.51 cents, or 23.63%, to a seven-week high of $0.8640/gal, a review of US Department of Agriculture and Platts data showed.
The margin hit a 28-week low three weeks ago, but rebounding ethanol and byproduct prices boosted margins this week.
The estimated ethanol price used in calculating the margin was the weekly average of the Platts Chicago Argo ethanol assessment, which rose 13.1 cents, or 5.99%, to $2.1897/gal.
The weekly average estimated delivered feedstock corn cost nudged up 0.06 cent, or 0.13%, to $4.4389/bushel.
The weekly average estimated dried distillers grain byproduct rose $10.86/st to $216.30/st, firming for the seventh straight week.
The estimated denaturant cost lowered 0.01 cent to $2.1940/gal, while the estimated monthly natural gas cost was stable at $8.13/MMBtu.
The denaturant cost was based on the weekly average of the Platts natural gasoline assessment at the Conway, Kansas, hub, while the gas cost was based on the January Platts Chicago ANR 7 pipeline monthly index.
The estimated production margin for a typical dry-mill ethanol plant was calculated by weighing data from Platts and government agencies, including average delivered corn cost, dried distiller grain prices, natural gas prices, certain blending costs and ethanol prices.
Fixed-cost calculations were based on a 50 million gal/year-capacity Midwestern plant with 32 employees working at an average salary of $47,300/year.
