Peter Gastreich's questions to REX AMERICAN RESOURCES (REX) leadership • Q2 2025
Question
Peter Gastreich of Water Tower Research LLC inquired about a recent community event's impact on local support for the Carbon Capture and Sequestration (CCS) project, the status of a utility interconnection issue, and the outlook for co-product margins in the second half of the year.
Answer
Executive Chairman Stuart Rose explained that the event at the One Earth facility was a success, attended by local officials and shareholders, which helped build more favor in the community. CEO Zafar Rizvi confirmed that the utility interconnection issue with Ameren has been resolved. Regarding co-products, Stuart Rose noted that corn oil remains strong, but Dry Distiller Grains (DDG) prices are weak relative to corn, a point Zafar Rizvi attributed to a drop in DDG exports.