Brazil’s corn production is growing, but its exports are not. The country is consuming more, and it could be good news for U.S. growers.
“Given this situation that the corn has good prices in domestic markets in Brazil because they have more use either in ethanol production or in meat production, we can expect that the amount of corn, at least from Brazil, in the international market, will reduce. And if that happens, the United States will have even more room to put its corn outside of the country,” said Joana Colussi.
Brazil uses more corn in ethanol production because it runs higher blends. In the U.S, regular gas contains around 10 percent ethanol, and E15 has around 15 percent. However, in Brazil, their ethanol blends run between 18 and 27 percent.
Strong crush demand and rising ethanol production are pressuring feedstocks, as traders monitor storage risks and supply chain uncertainty and await the upcoming January WASDE report.
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Dr. Seth Meyer Concludes Service; Dr. Justin Benavidez Appointed USDA Chief Economist
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USDA data indicates that 13.7 percent of U.S. households experienced food insecurity in 2024, the highest rate since 2014, even as most households remained food secure.
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Weather, Tight Supplies, and Planning Shape Farm Decisions
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Strong ethanol production and export trends continue to support corn demand despite seasonal fuel consumption softness.
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Cotton demand depends on demonstrating performance and reliability buyers can rely on, not messaging alone.
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