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.
American Farm Bureau Federation (AFBF) economist Danny Munch joined us on Thursday’s Market Day Report to break down the scope of the U.S. Christmas Tree industry and what growers are up against.
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Lewis Williamson with HTS Commodities breaks down the outlook on grain storage and domestic supply chain strength as producers weigh planting decisions with forthcoming federal aid.
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Experts say flooding the zone with more money could have unintented consequences without opening new markets for planted crops and inputs under significant pressure.
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A permanent national E15 standard would boost corn demand, lower fuel costs, and provide a stable path for U.S. energy security.
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