Argentina's reduction in the share of biodiesel in fuel could increase the global supply of soybean oil
The decision of the Argentine authorities to reduce the share of biodiesel in motor fuel will allow the country to increase exports of soybean oil, which, in turn, will lead to lower prices for it on the world market, reports Reuters.
Argentina's parliament has passed a law that reduces the mandatory share of biodiesel in motor fuel from 10% to 5%, and President Alberto Fernandez must sign it by the end of July.
Such a step will reduce the consumption of soybean oil by the biofuel industry of Argentina, and increase the volume of soybean oil supplies for export.
According to official data, in 2020, Argentina exported 5.36 million tons of soybean oil, 53.4% of which was purchased by India and about 8% each by Bangladesh and China.
At the end of June, according to the USDA, the average price of soybean oil in Argentina was 1 1,191/ton, in Brazil–. 1,233/ton, and in the United States–. 1,608/ton.
It is worth noting that Brazil, which recently reduced the share of biodiesel in motor fuel from 13% to 10%, plans to increase it again to 12% from September, and increase it to 15% in 2022.