11/27/24 Afternoon CommStock Report – Brazil Corn Ethanol Production Set To Reach 4 Billion Gallons in 2032

Brazil’s growing conditions remain ideal as we approach the end of November. While dry pockets were beginning to form in Southern Brazil last week, forecasts allow for solid precipitation of up to 4″, eliminating any concern for crop stress. Argentina will see the heaviest rainfall with areas of up to 6″. The northern tier of Brazil will see 1.5″ to 4″ falling later in the week. Temperatures look to be at or below normal. We estimate roughly 90% of the soybean crop will be planted by this weekend. The remaining 10% will fall in some of the fringe areas in northeast Brazil as well as Rio Grande do Sul. Our family farm in Minas Gerais is roughly 85% planted and should wrap up later this week.   Brazil continues to ramp up corn ethanol production. Currently, there are at least 12 “full” corn plants in Brazil in operation with another 10 “flex” plants. (Flex plants use sugarcane for feedstock half the year and then use corn the other half). According to Banco Itau, they have identified another 22 plants that are either being constructed or in the blueprint phase. This would effectively double the production capacity in Brazil. It seems…