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.
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.
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Farmer Jeffry Mitchell with the Mississippi Farm Bureau joins us for a spring planting update from the southeast region as drought, input costs, and fertilizer access complicate crop progress.
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Lower U.S. ethanol production and stocks may support ethanol prices while strong export demand continues to support ethanol and corn markets.
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