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.
Stronger rail movement and lower fuel prices are easing logistics, even as export pace and river conditions remain uneven.
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USDA Undersecretary Luke Lindberg told RFD-TV News that we can only guess what Congress will do down the road. Still, the USDA recognizes its responsibility to spend resources efficiently and effectively.
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Michelle Perez shares more about the American Farmland Trust’s resource to help farmers and producers plan soil health improvements.
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