Brazil's domestic corn market remains sluggish

Corn ethanol consolidates its advance in the Brazilian bioenergy sector, with a cost 24% lower than sugarcane — R$ 1.94 per liter against R$ 2.54 per liter, according to BTG Pactual. According to an analysis by Grão Direto, released this Monday (27), this competitive advantage should boost production, which is expected to reach 10.2 billion liters in the 2025/26 crop, representing nearly 30% of the entire national production. Meanwhile, sugarcane mills have reduced ethanol supply by 12%, prioritizing sugar, which has again shown better profitability in the international market. Even with the recent retreat of gasoline, hydrated ethanol remains valued in Ribeirão Preto, the main producing hub in the country. The margins of corn ethanol mills remain above R$ 1 per liter, driven by the sale of DDG — a byproduct that represents about 25% of total revenue. The performance confirms a consolidated demand for Brazilian corn, reinforcing the trend of expansion of this matrix in the energy ...