Corn ethanol production is on the rise in Brazil

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Ethanol production from corn is on the rise in the Brazilian market, according to information from TF Agroeconomia, citing Scot Consultoria's Monthly Report. “Ethanol production from corn is on the rise. In the 2021/2022 harvest, production was 3.47 billion liters, an increase of 34.3% compared to the previous harvest (Single). The projection is that 9.65 billion liters will be produced by 2030, an increase of 188.9% (UNEM)”, he comments.

“DDG production is expected to be 2.28 million tons in the 2021/22 harvest, an increase of 60% compared to production of 1.3 million tons in 2020/21 (UNEM). It is estimated that the production of dried distillery grains will reach 6 million tons by 2029 (UNEM)”, adds the consultancy.

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According to a survey by Scot Consultoria, the average price of DDG rose 2.2% compared to February and was quoted at R$1,750.43 per ton, without freight, considering prices converted to 32% of crude protein (CP). “For WDG, the average price rose 2% in the month-to-month comparison and the reference is R$604.40 per ton, without freight, considering prices converted to 32% of crude protein (CP)”, he indicates.

“In general, the good demand for the input due to the grass off-season, added to the first round of cattle confinements, is the main factor supporting prices, despite the weaker scenario for soybeans and corn at the end of March. The current DDG and WDG prices are a reference for contracts with delivery in the first half of 2022”, concludes the agroeconomic consultancy, citing the Scot Consultoria Monthly Report.

By: Leonardo Gottems | agrolink