Biofuels breakthrough affects US soy oil shipments

US soybean oil exports plummeted to the lowest level in 24 years as a direct reflection of the increased production of biofuels. The volume of shipments in the first seven months of the year was the lowest since 1997, according to data the US government released this week.

Giants like Exxon Mobil have been looking to take advantage of low-carbon fuel production incentives offered in California, the Pacific Northwest and Canada. This increases competition for soy oil, which makes domestic sales of the commodity, traditionally used as cooking oil, more competitive. “The current valuation of soybean oil is completely different from what it would have been a year ago or two years ago,” says Michael Swanson, chief agricultural economist at Wells Fargo.

Interest in the low-emission fuel market is not expected to diminish anytime soon: investment plans to expand soybean crushing capacity in North America total $2 billion, an unprecedented expansion. According to Rabobank, this encourages a “consistent surge in demand” for oilseed producers.

Source: Valor Econômico

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https://valor.globo.com/agronegocios/noticia/2021/09/11/avanco-de-biocombustiveis-derruba-embarques-de-oleo-de-soja-dos-eua.ghtml

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