The collapse of the second corn crop is due to the delay in the planting area as a result of climate problems. This delay may change the fulfillment of contracts regarding the delivery of the cereal to ethanol plants. However, according to the president of the Brazilian Union of Ethanol from Corn (Unem), Guilherme Nolasco, this situation will not drastically affect the production of the biofuel. “Of course, the crop failure brings concerns. Some supply contracts are being reviewed. A forecast of crop failure impacts mostly because of the contracts, but this should not bring major problems due to the existing stock”, he said. The corn ethanol industry keeps the estimates at 3.3 billion liters of the biofuel in the current 2021/22 cycle. According to Guilherme Nolasco, the plants have been working with a storage capacity that surpasses 85%. And there are units with at least 70% of their storage capacity. The president of Unem said that the ethanol industry is already blocking corn purchases for 2022 and 2023.
Source: Globo Rural Magazine (*Translated by Ia Niani)