Itau BBA bank expects limited availability of corn until the 2021/22 off-season. Still, for the first time in four years, global production is likely to meet the demand for the product. Itaú BBA estimates corn prices will remain stable, albeit at lower levels than those observed throughout this year, given the forecast of a greater global offer. According to the report, production of corn ethanol is expected to grow from 2.6 billion liters to 3.4 billion (32.5%). This estimate may be revised downwards, depending on corn prices. “In total, ethanol production should be 27.9 billion liters, versus 30.4 billion in 2020/21”, he points out. The manager of agribusiness consulting at Itaú BBA, Guilherme Bellotti, says that the room for improvement tends to remain limited. “Although we expect an increase in ethanol prices, and DDG (dry distillery grain) stability, in the wake of the high prices of the substitutes, corn prices are likely to remain firm and could hinder expressive gains”, he explains.
Source: Nova Cana (*Translated by Ia Niani)