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
Strong corn and China-driven demand support the pace of U.S. grain exports. RealAg Radio host Shaun Haney discusses Canada-China agricultural trade talks.
Seth Tucker of Tucker Farms, a first-generation Arkansas farmer, says rising input costs are forcing changes to his operation, including stepping away from rice this season.
Rich Nelson with Allendale joined us to break down early planting progress, market expectations, and what producers should keep an eye on as the season moves forward.
Tight global supply is likely to keep fuel and fertilizer costs elevated.

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:

President Trump issues a 60-day Jones Act waiver to ease fuel shipments amid Middle East tensions disrupting energy markets, while biofuel policy gains focus.
Acreage shifts could influence spring marketing decisions.
Corn and sorghum exports continue outperforming soybeans.
Expanding supplies are weighing on global coffee and cocoa prices.
Lewis Williamson with HTS Commodities discusses how tensions in the Middle East are impacting producer’s spring planting decisions.
Land values remain key to borrowing strength.