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.
Brooks York with Agrisompo joined us on Monday’s Market Day Report with some guidance on how producers can navigate their crop insurance claims for unsold grain crops.
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Strong U.S. yields and steady demand leave most major crops well supplied, keeping price pressure in place unless usage strengthens or weather shifts outlooks.
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ARC-CO delivers the bulk of 2024 support, offering key margin relief as producers manage tight operating conditions.
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USDA’s steady yields and heavy global stocks keep grains range-bound unless demand firms or South American weather becomes a real threat.
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As economic pressures continue to squeeze agriculture, ag lenders are signaling a more cautious outlook for farm profitability heading into next year, particularly among grain producers facing lower commodity prices and higher operating costs.
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