Experts assessed the impact of the new biofuel mandate on Brazilian soybean exports

Brazilian exports of soybeans and soybean oil could potentially decline slightly as domestic demand for oilseeds rises to 5 million tonnes following a decision to increase biodiesel production in diesel fuel starting in March 2024, Reuters reported, citing industry analysts. Pedro Schicchi, grains and oilseeds analyst at hEDGEpoint Global Markets, told Reuters he expects soybean oil exports to fall by 800,000 to 1 million tons, leaving domestic demand for soybean oil 200,000 to 400,000 tons higher than in 2023 of the year. About 70% of Brazilian biodiesel is produced from soybeans after they are processed into soybean oil. The Brazilian government last week increased the mandatory share of biodiesel to 14% from the current 12%. Brazilian soybean processors are expected to process 1 million to 2 million tons more soybeans in 2024 to meet additional demand for biodiesel, Schicchi said. The analyst noted that without taking into account existing stocks, Brazil's exportable soybean ...