REX American Resources record ethanol sales

What happened: REX American Resources Corporation (REX) reported record ethanol sales and profits in Q1 2026, driven by strong export demand and favorable commodity pricing. Gevo, Inc. (GEVO) shares surged 8% after announcing plans to establish a second ethanol production facility in North Dakota, targeting up to 75 million gallons of capacity. REX's FY2025 results were boosted by recognition of $28 million in 45Z tax credits.

Market impact: The ethanol sector is gaining traction, with REX's record sales and Gevo's expansion plans driving optimism. Higher ethanol production and demand could impact corn prices, affecting agriculture and food processing sectors. Improved regulatory clarity on tax credits is benefiting ethanol producers.

What to watch next: Investors should monitor REX's Q2 2026 earnings (due June 2026) for continued strong performance. Gevo's progress on its North Dakota expansion and any updates on its timeline will also be crucial. Additionally, keep an eye on ethanol export demand and commodity pricing trends, as they significantly impact ethanol producers' profitability.