Brazil’s Ethanol Boom Reshapes Global Corn Market

Source:  AgWeb

Farmdoc daily reports that Brazil’s rapid expansion of corn-based ethanol production is transforming the country’s domestic corn market, sharply boosting internal consumption and potentially curbing future exports. Takeaways:

· Record corn use for ethanol: Brazil’s corn ethanol production has surged from 16 million bu. in 2015-16 to 722 million bu. in 2024-25 — 15% of national output. The country now has 25 operational corn ethanol plants with 15 more under construction.

· Domestic consumption soars: Total corn consumption has jumped 53% in the past decade to 3.5 billion bu., with 2.5 billion bu. going to animal protein and 925 million to food, seed and industrial uses – including ethanol.

· Export impacts: Corn exports are projected to fall 20% from their 2023 peak, partly due to China’s declining demand and increased output from the U.S., Argentina and Ukraine.

· Price surge: Domestic corn prices hit a 3-year high in March, topping 37 reais ($6.57) per bushel in Paranaguá.

· Policy & market shifts: Ethanol demand is rising with Brazil possibly raising its gasoline ethanol blend from 27% to 30%. Flex-fuel vehicles and new plants will likely sustain demand growth.

Global implications: Brazil’s booming ethanol sector, powered by second-crop corn (safrinha), is expected to tighten export availability, easing competitive pressure on U.S. corn in global markets and supporting international prices.

Discover more about аgri market developments at the 11 International Conference BLACK SEA OIL TRADE on September 23 in Bucharest! Join agribusiness professionals from 25+ countries for a powerful start of the oilseed season!

Tags: , , , , , ,

Got additional questions?
We will be happy to assist!