Alto Ingredients Inc (ALTO)

[kel3]

Sounds Like Bloomberg Is Saying

Producers Are Making .573c Profit per Gallon On DDGS

Q4 Should Be Good as DDGS Are Sold at 1/3 the Price Of Corn

Corn December 2012
$7.25/3 = $2.4176

DDGS Price per Bushel
= $2.4176

$2.4176/2.8 Gallons per Bushel
= .863c

Based on December contracts for corn and ethanol, producers are losing 29 cents on each gallon of the fuel made, down from 28 cents on yesterday, excluding the revenue that can be made from the sale of dried distillers’ grains, a byproduct of ethanol production that can be fed to livestock, data compiled by Bloomberg show.

DDGS per Gallon .863c - losing 29 cents on each gallon of the fuel made,excluding the revenue that can be made from the sale of dried distillers’ grains, a byproduct of ethanol production that can be fed to livestock

.863c - .29c = .573c Profit per Gallon On DDGS

http://www.bloomberg.com/news/2012-11-13/ethanol-s-discount-to-gasoline-narrows-as-production-costs-rise.html