The increased production of biodiesel will strengthen oilseed prices in 2018
Experts of Oil World predicts that in 2018, global production of biodiesel will increase in comparison with 2017 2.17% to 37.52 million tons.
the United States will increase biodiesel production 0.65 million tons to 6.75 million tons in 2015, the United States made only of 4.72 million tonnes of biodiesel, however, within 3 years the production has grown substantially.
Indonesia will increase biodiesel production from 2.92 to 3.7 million tons, moreover, that the increased production will contribute to the recent decision of the European court to abolish anti-dumping duties on Indonesian biodiesel.
the EU will increase the production of biodiesel from 13 to 13.2 million tonnes, but this figure may change with the restoration of the supply of biofuels from Argentina and Indonesia.
Due to the increase in the government share of biodiesel in motor fuel from 8% to 10%, biodiesel production in the country will rise to a record 4.4 million tons, while in Argentina it will be reduced from 2.87 to 2.25 million tons.
the Increase in biodiesel production will increase the demand for oilseeds and vegetable oils, the prices of which are still uncertain due to problems with the harvest in South America and a trade war between the US and China.
High world prices for oil crops will force farmers to reduce U.S. acreage for corn in favor of soybeans, while in Canada to reduce the crops of peas and lentils in favor of canola. In Ukraine, the volume of soybean crops remains questionable due to the uncertainty of reimbursement of VAT at export. Russia will also increase soybean crops by reducing the area under peas caused by falling prices.