S.D. Codified Laws § 57A-7-205
Title under warehouse receipt defeated in certain cases
A buyer in ordinary course of business of fungible goods sold and delivered by a warehouse that is also in the business of buying and selling such goods takes the goods free of any claim under a warehouse receipt even if the receipt is negotiable and has been duly negotiated.
Source: SL 2009, ch 254, § 7-205.