NEW BIODIESEL BLEND COULD INCREASE DEMAND FOR SOYBEAN OIL BY 1 MILLION TONS

A new biodiesel-fossil diesel blending percentage of 14% came into effect on March 1. This has resulted in a boost in domestic demand for soybean oil by approximately 1 million tons, bringing the projected total to 9.4 million tons. As a result, an increase of 5.5 million tons in oilseed crushing is expected this year. However, due to higher domestic demand, soybean oil exports could fall to 1.3 million tons from 2.3 million tons the previous year. The biodiesel market has seen price increases due to shortages in the spot market, with mills giving priority to advance contracts.
Source: Globo Rural (*Translated by Ia Niani)