ETHANOL PRODUCTION TO SET RECORD IN 2026-27 IN BRAZIL’S CENTER-SOUTH

Ethanol production in Brazil’s Center-South could hit a 21-year high in the 2026-27 harvest, driven by favorable weather, the expansion of corn ethanol, and reduced cane allocation for sugar, according to Argus Media. Output is forecast at 36.9 million m³ between April 2026 and March 2027, surpassing the 33.6 million m³ projected for 2025-26 and potentially becoming the highest volume in Conab’s historical series. Corn ethanol alone is expected to reach 11.1 million m³, a 16% annual increase. The resulting oversupply may exert downward pressure on prices in the first half of the year, potentially impacting mill margins and ethanol’s competitiveness against gasoline.
Source: Cana Online (*Translated by Ia Niani)