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.
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A weaker dollar supports export demand and may strengthen crop prices.
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Smaller supplies could support cotton prices despite weak demand.
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Fred Nichols, Chief Sales and Marketing Officer for Huma, joined us with a sneak peek at Commodity Classic next week in San Antonio, Texas.
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Federal aid helps, but producers will bear most of the losses. Balance sheets may look stable, but margins remain fragile without policy support.
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Biofuel and corn producers await proposal as Renewable Fuels Association pushes for expanded ethanol access.
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