# Brazil ethanol glut threatens producer margins in 2027 as output set to hit record 46.3 billion litres

> Brazilian ethanol production is forecast to rise 10% to a record 46.3 billion litres in 2027/28, while domestic consumption is projected to grow 6% to 41.2 billion litres. Record Center-South sugarcane crushing and seven new corn-ethanol plants are expected to expand supply, potentially leaving ethanol prices below production costs for several months.

- Date: 2026-11-06 · published 2026-11-07T03:22:10.332Z
- Category: report · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/85480-brazil-ethanol-glut-threatens-producer-margins-in-2027-as-output-set-to-hit
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Expanding corn-based ethanol capacity could lift Brazilian corn demand, but the broader ethanol surplus is expected to pressure ethanol prices and producer margins. Cane allocation between sugar and ethanol may adjust as mills respond to those prices.

## Read by commodity

- CORN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2025-02-01 | [U.S. Ethanol Production and Exports Hit Records in 2024, New Data Show](https://feedsoft.ai/events/26055-u-s-ethanol-production-and-exports-hit-records-in-2024-new-data-show.md) | +0.6% | -3.9% |
| CORN | 2025-12-17 | [US ethanol production at fresh record high, exports highest in over a year](https://feedsoft.ai/events/21504-us-ethanol-production-at-fresh-record-high-exports-highest-in-over-a-year.md) | +1.1% | -3.0% |
| CORN | 2022-03-10 | [Ethanol production and stocks rise as margins improve  : The Daily Digest](https://feedsoft.ai/events/42263-ethanol-production-and-stocks-rise-as-margins-improve-the-daily-digest.md) | +2.5% | +11.8% |
| CORN | 2018-07-26 | [Ethanol production soars thanks to increased exports and margins  : The Daily Digest](https://feedsoft.ai/events/64023-ethanol-production-soars-thanks-to-increased-exports-and-margins-the-daily.md) | +1.0% | -0.5% |
| CORN | 2020-08-26 | [DDGS Production Increases and Ethanol Margins Improve - The Jacobsen](https://feedsoft.ai/events/51610-ddgs-production-increases-and-ethanol-margins-improve-the-jacobsen.md) | +1.5% | +7.0% |

## Sources

- bioenergytimes.com: https://bioenergytimes.com/brazil-ethanol-glut-threatens-producer-margins-in-2027-as-output-set-to-hit-record-46-3-billion-litres/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.