Demand for biodiesel drives up soybean oil

The "crush margin" is an indicator that measures the profitability of the soybean crushing industry from the sale of its main derivatives: the meal, used mainly in the formulation of feed, and the oil, intended for both food and biodiesel production. Traditionally, the meal represents the largest share of this equation, given its strong demand in the livestock sector. However, last week, the scenario reversed. According to Cepea analysts, this change is related to a combination of factors: the prices of soybean grain and meal fell more intensely, while the oil had a milder devaluation. The firm demand for oil, especially from the biodiesel sector, has sustained its value at more stable levels. Energy demand supports oil prices The expansion of biodiesel production in Brazil and the United States has been one of the main drivers of the appreciation of soybean oil. In the domestic market, the increase in the mandatory biodiesel blend with fossil diesel and the expectation of raising ...