Corn oil production also achieved a record high production of 38.6 million pounds on a record conversion of 0.64 pounds per bushel of corn. Both our Agro business and marketing and distribution segments had improved quarterly performances well, versus the first quarter of the year, with $2.4 million and $2.9 million of operating income respectively.
We believe our non-ethanol operating segments should produce approximately $60 million of operating income in 2012 The $10 million increase in projected non-ethanol operating income is partially related to our ability to increase the number of railcars deployed, crude oil transportation to over 500 cars for the rest of 2012.
We have not experienced any significant effect on our ethanol plant operations as a result of this redeployment effort. In fact for third quarter, we’ll see almost a full benefit from this program, with better expected performance in our marketing and distribution segment.
As we noted in our earnings release yesterday, we have locked in approximately 40% of our ethanol margins for the fourth quarter at profitable levels. This combined with positive results from our non-ethanol operating income segments gives us the confidence to say that we believe we’ll return to profitability in the fourth quarter. This estimate is based on the current Q4 curve combined with our lock volume. Obviously this change is daily, but at this point even with a weaker forward curve we are still projecting a good recovery in the fourth quarter helping neutralize to defensive third quarter.Read the rest of this transcript for free on seekingalpha.com