All of our assets performed well during the quarter, and the benefit we had from strong ditillers pricing and as well our corn oil revenue that was realized over the full quarters did help to mitigate the loss during these historically low crush margins.
Later in the call, we’ll talk about the ongoing drought, but we do expect to have advantage as the harvest progresses here in the next month or so as the local crop around both of our plants remaining in good shape. In Nebraska, it is irrigated all around our facilities and southern Minnesota has some decent moisture levels and has not experienced the drought going on throughout most of the corn belt.
There is a little question in our view that the key reason for the continued lag in the industry's profitability and low crush margins, the high level of ethanol inventories that were carried over from the previous quarter and the industry continued to over produce well in to the second quarter.
Towards the end of the quarter, we did finally see a pullback in production, which has continued in to the third quarter. We also saw corn basis levels that rose through the quarter, exceeding historical averages.We believe that this in part is a result that farmers increased on farm storage, spreading out their corn sales across the year in limiting supply. Because the Chicago board corn ethanol crush spreads remained range bound, this trend towards rising local corn bases put additional pressure on margins as the quarter progressed. This basis pressure was a key driver in our decision to scale back in mid-June which I will also cover some of the rationale behind that later. But I am going to turn it over to Kelly to go through the financial results for the second quarter.
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