Agricultural Economics, Department of
Cornhusker Economics
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First Sugarcane, Now Corn: How a "New" Ethanol Industry in Brazil Is Changing Agricultural and Energy Markets
Date of this Version
10-28-2026
Document Type
Newsletter Issue
Citation
Cornhusker Economics, October 29, 2026
Agricultural Economics, University of Nebraska-Lincoln
Abstract
Brazil’s corn ethanol boom shows how a new use for an agricultural commodity can reshape production geography and gradually change market relationships. The study finds stronger connections among regional ethanol markets and early evidence of growing corn–ethanol links, while established corn–soybean relationships remain important.
The larger lesson is that a new market for an agricultural commodity does more than create additional demand. It can change how prices are determined, how shocks spread, and how businesses manage risk. Understanding those changes will become increasingly important as Brazil’s ethanol industry matures and as agricultural markets worldwide become more interconnected.