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
The proposed merger between Union Pacific and Norfolk Southern would create the nation’s first transcontinental railroad connecting the East and West coasts under a single carrier.
North Dakota State University’s Dr. Shawn Arita joins us to break down new research on U.S. ag export losses tied to retaliatory tariffs and what they signal for trade moving forward.
NPPC President Rob Brenneman says rising fuel and input costs are creating pressure across pork production despite steady trade.
ISA says Southeast Asia continues driving demand for soy-based feed products through expanding livestock and seafood industries.

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:

For producers, demand is strong, but drought, disease, and costs still shape supply.
Butter has softened as milkfat supplies remain ample.
Drought and Planting Shape Weekly Crop Condition Recap
Drought remains a major risk, with the ERS reporting that 98 percent of the U.S. cotton production area was affected by drought in early May.
Higher placements lifted feedlot inventories, but slower marketings point to continued tightness in finished cattle movement.
China remains critical to U.S. farm exports, but Brazil’s growing market share keeps pressure on U.S. soybean demand.