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
Trade disputes can quickly reduce demand for key crops.
Seafood producers gain expanded access to USDA support programs.
Higher fuel costs are raising grain shipping expenses. RealAg Radio’s Shaun Haney discusses how energy market disruptions are impacting farmers in new ways as the War in Iran continues.
Variety meat demand is helping offset weaker beef exports.

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:

Brazil logistics issues may support U.S. soybean demand.
AFBF Economist Danny Munch breaks down a new Farm Bureau analysis showing that producers now earn less than 6 cents of every food dollar, as farm input costs continue to squeeze margins.
Productivity gains are supporting supply despite limited herd expansion.
Brooks York with AgriSompo addresses how current market conditions and risk management are impacted by volatility in the Middle East, and considerations for farmers in the spring planting season.
Farm CPA Paul Neiffer provided guidance on navigating the R&D tax credit, emphasizing record-keeping, eligibility, and maximizing potential savings as crop margins remain the key pressure point for farmers.
Justin Tupper with the U.S. Cattlemen’s Association joins us to discuss the USDA’s voluntary labeling updates, industry priorities, and the outlook for U.S. cattle producers.