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.
Farmers should watch for soybean export rebounds with harvest, while corn and wheat shipments remain strong and sorghum demand struggles.
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According to the most recent version of the Household Food Security Report for 2022-2023, food insecurity is on the rise in the U.S.
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Record U.S. sorghum crop faces weak demand as China slashes imports, while corn farmers warn of rising costs, shrinking margins, and global market pressures.
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