Brazil Corn Ethanol Growth Reshapes Global Markets

Brazil’s ethanol growth could shift the corn trade.

NASHVILLE, Tenn. (RFD NEWS) — Brazil’s fast-growing corn ethanol industry is creating new risks and opportunities for U.S. corn producers. Analysis from Grant Gardner, Assistant Extension Professor at the University of Kentucky at Martin, shows Brazil’s expanding domestic corn use could reshape global trade flows and add volatility to corn prices.

Brazil has long been a major ethanol producer, traditionally relying on sugarcane. But by 2024, about 20 percent of the country’s ethanol output came from corn, driven largely by safrinha production in the Center-West region.

Corn ethanol capacity in Brazil is projected to start near 23 million metric tons in 2026 and could grow to between 33 and 55 million metric tons by 2035. Brazil’s 2025/26 corn crop totaled about 5.56 billion bushels, meaning projected 2026 ethanol capacity would consume a meaningful share of production.

As more corn moves into ethanol and feed use, export availability may fluctuate, which could reduce competition with U.S. corn in some years but increase volatility in global markets and futures prices.

Farm-Level Takeaway: Brazil’s ethanol growth could shift the corn trade.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
Fred Nichols explains how crop residue can provide valuable nutrients and help protect soil, but farmers need to consider how to make those nutrients available for the next crop.
President Donald Trump plans to sign an executive order to lower diesel costs, including expanding access to tax-exempt dyed diesel as farmers face high harvest fuel prices.
Improved water levels are allowing more vessels and deeper loads through the Panama Canal.
Farmers are weighing marketing opportunities as high input costs continue to pressure margins.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Foreign subsidies, tariffs, and market controls continue to shape global sugar competition facing U.S. growers.
Drought Harvest Livestock Pressures Shape State Agriculture Nationwide
Weekly ethanol output fell to its lowest level since January as inventories continued to decline.
Winning bids averaged about $1.3 million as demand for 2027 grain rail capacity increased.
Rising Treasury yields could keep farm borrowing costs elevated heading into 2027.
USDA reported 2.10 billion bushels of corn on hand, well above trade expectations.