Brazil’s ethanol boom is changing the global corn market

Source:  AgroPortal.ua
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Brazil’s rapid growth in corn ethanol production is transforming the country’s domestic market, dramatically increasing domestic consumption and potentially limiting future exports. This is according to data from Farmdoc daily, AgWeb reports.

Corn ethanol production in Brazil has grown from 0.4 million tons in 2015/16 to 18.4 million tons in 2024-2025 MY, which is 15% of the country’s corn production. The country currently has 25 corn ethanol plants in operation, with another 15 under construction.

Demand for ethanol continues to grow. The Brazilian government is considering increasing the ethanol content in gasoline from 27% to 30%.

At the same time, corn exports are expected to decline by 20% compared to the peak level in 2023. This is partly due to lower demand from China, as well as increased corn production in the United States, Argentina, and Ukraine.

Brazil’s booming ethanol sector, based on the second crop of corn (safrinha), could reduce exports, making US corn less competitive on the world market and supporting international prices.

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