Green Brick Partners, Inc. (GRBK)

[kel3]

Bloomberg: Including DDGS Producers are Profiting

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.

Dont Know Why Bloomberg Said Excluding dried distillers’ grains
revenue ?

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


If You Include DDGS Revenue they are Showing a .573c Profit.

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

.863c - .29c = .573c Profit per Gallon Including DDGS Revenue