Company: REX
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0000930413-25-002856
Chunk: 97

Company: REX AMERICAN RESOURCES Corp
Filing Date: 2025-09-02
Form: 10-Q
Item: Part I, Item 8
Chunk 97
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 fiscal year 2025 compared to the first six months of fiscal year 2024 as the average price per ton sold decreased 18%,
offset partially by a 2% increase in tons sold. The decrease in the dried distillers grains selling price is consistent with recent
quarters and reflects an extended period of lower corn pricing as dried distillers grains prices often correlate with corn pricing.
The increase in tons sold was impacted by higher production levels and uncertainty in the market regarding tariffs.

Distillers corn oil revenue increased approximately
46% in the second quarter of fiscal year 2025 compared to the second quarter of fiscal year 2024 as the selling price per pound
increased 26% and the amount of pounds sold increased 14%. Distillers corn oil revenue increased approximately 22% in the first
six months of 2025 compared to the first six months of fiscal year 2024 as the selling price per pound 

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increased 11% and the amount
of pounds sold increased 8%. The increase in the distillers corn oil selling price resulted primarily from fluctuations in demand
in the renewable biodiesel market which often reflects the price of soybean oil.

Modified distillers grains revenue increased
11% in the second quarter of fiscal year 2025 compared to the second quarter of fiscal year 2024 as the amount of tons sold increased
by 10%, coupled with a 1% increase in the average selling price per ton sold. Modified distillers grains revenue increased 24%
in the first six months of fiscal year 2025 compared to the first six months of fiscal year 2024 as the amount of tons sold increased
by 29%, offset partially by a 4% decrease in the average selling price per ton sold. The decrease in the modified distillers grains
selling price in the six-month periods resulted primarily from an extended period of lower corn prices as prices tend to move in
the same direction, but are also impacted on changes in local market demand. As such, the price in the three-month comparable periods
saw a slight increase. Our consolidated plants’ decisions to sell modified or dried distillers grains fluctuate from time
to time based upon market conditions.

Cost of sales increased 12% in the quarter
ended July 31, 2025, compared to the prior year second quarter. Corn accounted for approximately 74% ($106.5 million) of our cost
of sales during the second quarter of fiscal