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

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:

Farmers will need to closely monitor forecasts if the regulatory changes are implemented, as temperature cutoffs will replace fixed spray dates.
With China’s pullback, U.S. sorghum producers must broaden their export markets. Building connections now could help stabilize prices and demand for the upcoming larger crop.
Higher domestic rail tariffs and mixed capacity shifts will influence grain movement this harvest. Strong corn exports provide momentum, but logistics costs remain a critical factor.
Despite global improvement, food insecurity remains deeply concentrated in vulnerable regions.
The Final Grain Stocks Report may be the last key figures we see if a government shutdown halts future updates.
Livestock and government payments provide a boost, but crop receipts and rising expenses keep pressure on margins. Strong financial planning remains key in a volatile environment.