The FAS projects Paraguay’s corn consumption to reach a record 2.4 million tonnes in 2025-26, with 1.5 million tonnes allocated to ethanol production. “Paraguay’s bioethanol industry continues to expand,” the FAS noted. “Two large-scale ethanol plants are currently operating at full capacity, and a third plant, currently under refurbishment, is expected to resume operations by mid-2025. Once fully online, the plant will consume an estimated 420,000 to 450,000 tonnes of corn annually, beginning in calendar year 2026.”
The report also highlighted potential shifts in the ethanol sector, as some producers are exploring sorghum as an alternative to corn. “Sorghum offers greater drought resilience and requires lower production investment, though it generally yields less and commands lower prices than corn,” the FAS explained. This could influence future corn demand.
Corn production in Paraguay for the 2025-26 marketing year is forecasted at 5.2 million tonnes, consistent with the previous year. While the total planted area is expected to decrease to 900,000 hectares, down 70,000 hectares from 2024-25, improved yields are anticipated, assuming typical weather conditions.
Corn stocks are projected to remain at 250,000 tonnes, sufficient for about one month of domestic use. The FAS noted that grain users and traders often reduce stocks before the harvest to accommodate new supplies. “This lean inventory strategy is typical in Paraguay’s corn market, where storage is limited and cash flow considerations often incentivize pre-harvest sales or exports,” the FAS stated.
