Commodity price volatility
Ethanol profitability depends on the spread between ethanol prices and corn/feedstock costs.
- Scope
- Ethanol and by-products segment
- Materiality
- high
REX American Resources Corporation
REX American Resources is a U.S.-based holding company focused on ethanol production and related by-products through majority-owned and equity-invested plants in the Midwest. Its business centers on ownership, oversight, and capital allocation across ethanol facilities that produce fuel ethanol, distillers grains, and distillers corn oil.
14,4 %
14,6 %
+1,2 %
5.94
5.56
| % | |
|---|---|
| Fuel ethanol | 78% Denatured fuel ethanol produced from corn and sold to fuel and blending markets. |
| Distillers grains | 15% Animal feed co-products including dried and modified distillers grains. |
| Distillers corn oil | 6% Corn oil recovered during ethanol production and sold as a by-product. |
| Other and derivative items | 1% Minor revenue items including derivative gains and miscellaneous sales. |
REX sells ethanol and co-products to fuel distributors, blenders, and industrial buyers, while distillers grains are...
- Fuel ethanol blenders and distributorsprimary
Buy ethanol for blending into gasoline and for Renewable Fuel Standard compliance needs.
- Animal feed and livestock customerssecondary
Buy dried and modified distillers grains as protein-rich feed inputs.
- Industrial and commodity by-product buyerssecondary
Buy distillers corn oil and other co-products for further processing or resale.
- Equity investee plant stakeholderssecondary
Local farmer groups and partners involved in the ownership and governance of plants.
REX is headquartered in Dayton, Ohio and operates through ethanol plants in Illinois, South Dakota, Iowa, and Wisconsin...
- •Headquartered in Dayton, Ohio
- •Ethanol plants in Illinois, South Dakota, Iowa, and Wisconsin
- •Midwest location supports corn sourcing and bulk logistics
- •Rail access is important for shipping ethanol and co-products
- •Business is primarily U.S.-based with no disclosed foreign operations
REX’s strategy is to own and oversee ethanol assets with strong operating partners, while using its balance sheet to...
01
Expand and upgrade ethanol plant assetsmedium-term
Higher-capacity and lower-carbon assets can improve long-term competitiveness in fuel markets.
02
Preserve operating flexibility and liquidity at plant levelshort-term
Ethanol is a commodity business that requires working capital and capital spending through cycles.
03
Optimize ownership and oversight of joint venture-style investmentslong-term
The company’s returns depend on governance, capital allocation, and performance of majority-owned entities.
REX is exposed to commodity-price volatility, since ethanol margins depend heavily on corn, ethanol, and co-product...
Transportation and rail disruption
The company ships much of its product by rail and also receives corn by rail.
- Scope
- Inbound corn and outbound ethanol/DDGS logistics
- Materiality
- high
Regulatory and RIN compliance risk
Ethanol sales are tied to Renewable Fuel Standard compliance and RIN generation.
- Scope
- Fuel ethanol sales
- Materiality
- high
Customer credit risk
Receivables from ethanol and co-product customers may not be collected on time.
- Scope
- Trade receivables
- Materiality
- medium
Capital funding risk
Plant upgrades and sequestration projects require substantial capital outlays.
- Scope
- Carbon sequestration and expansion projects
- Materiality
- high
Foreign competition and trade policy
Imported ethanol and tariffs can affect domestic pricing and export demand.
- Scope
- U.S. ethanol market
- Materiality
- medium
Revenue recognition timing
Quarterly comparability and reported sales timing
Equity method investments and noncontrolling interests
Reported earnings and ownership economics
Impairment of long-lived assets
Potential write-downs of plant and equipment
Discontinued operations and tax credit audit
Contingent liabilities and tax uncertainty
Derivative accounting
Volatility in quarterly earnings
: 29/04/2026