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
A weaker dollar supports export demand and may strengthen crop prices.
Smaller supplies could support cotton prices despite weak demand.
Biofuel and corn producers await proposal as Renewable Fuels Association pushes for expanded ethanol access.
Strong corn exports support prices while soybeans lag yearly pace. However, large carryover stocks limit upside despite solid yields.
Weskan Grain CEO Will Bramblett discusses the antitrust lawsuit filed by grain farmers and agribusinesses, and its potential implications on rail competition and market access.
RealAg Radio host Shaun Haney shares insight into Canada’s trade push in Mexico and what it could signal for agriculture and the USMCA moving forward.

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:

U.S. Agriculture Faces Mixed Weather, Market Pressures
Strong exports and production support ongoing corn demand.
Strong consumer demand supports livestock market outlook.
Farm legal expert Roger McEowen discusses a new rail antitrust case in Kansas and its potential implications for farmers as rail upgrades signal continued export-driven demand for logistics.
Surging energy markets are quickly becoming a cost story for U.S. agriculture as crude oil climbs on supply fears tied to the Middle East conflict.
Strike risk adds volatility to already tight markets.