The U.S. ethanol industry is raising concerns over an uneven trade relationship with Brazil.
The U.S. Trade Representative’s Office launched an investigation into Brazil last week, and the ethanol industry will be part of that inquiry. While the U.S. imports sugarcane ethanol from Brazil, the Brazilian market places tariffs on American corn ethanol exports. Industry leaders say this lack of reciprocity is a fairness issue that needs addressing.
“We’ve had concerns about that mainly because Brazil has a tariff on U.S. ethanol, U.S. corn ethanol, going to Brazil, and we don’t have the same tariff in the U.S. And so, certainly, the Trump administration has been very engaged on this fairness issue,” said Chris Bliley, senior vice president of regulatory affairs at Growth Energy.
However, Bliley adds that it is not the only concern with Brazil’s sugarcane ethanol.
“I think one of the other concerns we have is that Brazilian sugarcane ethanol can get an advanced biofuel RIN where corn starch ethanol is not, and so that’s an issue that we’ve been working on as well. But we’re pleased to see that our Trade Representative and others in the administration are starting to address this fairness issue. And hopefully, we can return to parity between the two markets.”
Meanwhile, U.S. ethanol inventories have dropped to their lowest level in seven months. Stocks fell below 23.7 million barrels last week, despite a slight uptick in production. This tightening supply could affect fuel markets as demand holds steady.
Large Brazilian crops heighten downside price risk if the weather allows production to reach projected levels.
January 22, 2026 12:38 PM
·
Ethanol and corn groups are not hiding their disappointment over new reports that the bill to allow year-round E15 sales failed as Congress forges ahead on government funding, with another shutdown looming.
January 22, 2026 11:24 AM
·
Corn growers are turning to ethanol, E15 expansion, and export markets to help absorb record supplies and stabilize prices. Farm leaders discuss low-carbon ethanol demand, flex-fuel vehicle challenges, input costs, and the role of USMCA as producers look for market relief in the year ahead.
January 20, 2026 02:04 PM
·
Freight volatility and route selection remain critical to soybean export margins and competitiveness.
January 19, 2026 04:00 PM
·
Trade volatility and shifting export destinations increase marketing risk for producers heading into 2026.
January 18, 2026 07:00 AM
·
National Corn Growers Association Chief Economist Krista Swanson discusses corn supply pressures, market fundamentals, policy considerations, and producer outlook for the year ahead.
January 16, 2026 01:13 PM
·
Record ethanol production and improving blending demand continue to support corn usage despite rising short-term inventories.
January 15, 2026 11:47 AM
·
USDA flash corn sales, Cattle on Feed and Inventory reports, and beef packer antitrust concerns dominate January agricultural market news.
January 13, 2026 01:53 PM
·
U.S. Secretary of Agriculture Brooke Rollins said permanent access to the higher ethanol blend would provide farmers with much-needed certainty while supporting domestic crop demand.
January 13, 2026 01:31 PM
·
