Brazil to sow more corn

Brazil is set to increase corn production in the MY 2026/27 as the grain and feed sectors shift to more profitable crops due to high ethanol demand and higher profitability compared to rice and wheat, the United States Department of Agriculture (USDA) has forecast.

Brazil is forecast to produce a total of 136 million tonnes of corn in the 2026/27 season, up 1.5% from the 134 million tonnes estimated for 2025/26. Sown area is expected to increase slightly from the previous year, from 22.8 million hectares to 23 million hectares. Corn consumption is estimated at 96.3 million tonnes (+0.5% year-on-year).

According to the Brazilian Association of Corn and Sorghum Producers, about 60% of the corn consumed in the country is used for animal feed, with 32% for poultry and 15% for pigs. Experts estimate that the sector will consume about 60 million tons of corn, including dry distillate (DDG) waste.

At the same time, the use of corn for ethanol production is increasing every year. Brazil currently has 31 corn ethanol plants operating in several states, with a production capacity of 12.93 billion liters per year. Another 20 plants are under construction. Brazil produces about 5 million tons of DDG annually.

The export forecast for the MY 2026/27 is 42 million tons, unchanged from the previous season. While high production levels support export potential, logistical challenges are limiting grain shipments and making sustained high corn exports unlikely, experts say.

“Brazil’s continued agricultural output growth has not kept pace with investment in storage infrastructure. As a result, the country is experiencing structural imbalances that directly impact food security, rural producer profitability, agricultural sales, and operating costs,” the USDA said.

Tags: corn, grain, Brazil, sown area, crop forecast