Brazil's Technical Corn Oil Exports Soar on European Demand

Brazil's exports of technical corn oil (TCO) have seen significant growth in recent months, driven by increasing demand from Europe's renewable fuels sector. In August 2026, Brazil shipped out 42.5 thousand tons of TCO, a 28.8% increase from July and a staggering 165% jump compared to the same period last year. The total export volume for January-August reached 162.6 thousand tons, a notable 96.8% rise year-over-year.

The strong demand from European producers of hydrogenated vegetable oil (HVO) has led to higher export premiums, making it challenging for domestic buyers to secure supply at competitive prices. Market participants reported that export-linked bids on an FOB Mato Grosso basis were around BRL 300 per ton above the prices offered by the animal nutrition sector.

The growth in TCO exports is also attributed to Brazil's rapidly expanding corn ethanol industry, which produces TCO as a coproduct. As producers seek access to the European market, they are placing greater emphasis on obtaining ISCC certification and negotiating export premiums.