Aug 24, 2026
Ethanol Sector in Brazil Increasing Domestic Corn Consumption
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
To say that corn ethanol production in Brazil is "on a roll" is an understatement. Currently, there are 33 corn ethanol facilities in operation in Brazil, and that number is expected to more than double in the next six years considering facilities under construction and projects.
The consulting firm Datagro estimates that the ethanol industry in 2026/27 will consume 32.49 million tons of corn, an advance of more than 14%. Datagro is estimating Brazil's 2026/27 corn production at 147.5 million tons. If verified, ethanol would consume approximately 22% of Brazil corn production in 2026/27
Brazil's corn exports in 2026/27 are expected to be stable at 45 million tons with the feed sector absorbing 64.2 million tons, an increase of 4%.
How much corn will be produced in Brazil in 2026/27 is an open question given tight margins, high input costs, expensive credit, and approximately 6% of Brazilian farmers in bankruptcy proceedings.
Additionally, farmers are concerned if the current "super" El Nino will impact their corn production. Approximately 77% of Brazil's corn is produced as a second crop after soybeans If El Nino delays the planting of soybeans due to hot and dry conditions as predicted, it will delay planting the safrinha corn, increasing the risk of lower yields.