News

Brazil follows in the footsteps of the US: Soybean oil rises in price as it moves towards becoming an energy commodity

Soybean
Brazil
Market & Price Trends
Published Apr 14, 2024

Tridge summary

In Brazil, soybean oil prices experienced a rise in March due to an increase in domestic demand, especially from the food industry, in anticipation of higher biodiesel production. This surge in demand is linked to the potential government decision to increase the biodiesel blend in diesel from 14% to 25%, with soybean oil making up about 70% of the biodiesel's raw material. The increased demand for soybean oil has led to a price recovery, while soybean meal prices have fallen due to an oversupply resulting from the ramped-up soybean crushing for oil. This trend is reflective of similar developments in the US, where soybean oil's role as a biodiesel component categorizes it as an energy commodity.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Soybean oil prices rose in the Brazilian market last March driven by greater domestic demand, especially coming from industries in the food sector. “Representatives of these factories showed a preference for acquiring volumes for the medium term, aware of the expectations of an increase in biodiesel production in Brazil,” states the latest monthly bulletin of the Center for Advanced Studies in Applied Economics (Cepea) of Esalq. /USP. “It should be noted that soybean oil is the main raw material in the production of biodiesel in the country, representing around 70% of the total,” he added. Currently the mandatory mixture of biodiesel with diesel in Brazil is 14% (B14), but the national government is evaluating increasing the cut to 25% to avoid registering fuel shortages during harvest times. A Cepea survey shows that the average price of crude and degummed soybean oil sold in the São Paulo region (with taxes included) began to recover last month in line with increased demand. The ...
Source: Agromeat
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.