Citi estimates that Brazil corn ethanol will almost double in production by 2032.

Citi Investment Bank said that Brazil's corn ethanol production will almost double by 2032 to 16 billion liters, citing the rapid growth of the industry.

Citi estimates that Brazil will produce 6.3 billion liters (or ethanol) of corn in 2023-2024. The bank expects this to increase to 9.5 billion during the current crop season.

The note stated that Brazil had 22 corn ethanol plants in operation as of last year. Twelve additional facilities are currently being constructed and nine more have been given the go-ahead for construction.

Citi stated that "Corn ethanol has key advantages over sugarcane due to its storage life and the lower transportation costs, which allow production in remote areas." Corn could also balance Brazil's market for ethanol by ensuring a consistent supply, especially during sugarcane's off-season.

Brazil's National Corn Ethanol Union predicted in January that corn ethanol production would increase by 30% this season, compared to the previous period.

The group said that it also expects to surpass forecasts this season by around 200 million liters. This would bring the total production to about 8.2 billion liters.

(source: Reuters)