New Argentine biodiesel law will impact global soy oil prices

On Monday, industry experts announced that Argentine soy oil exports will likely increase due to a new law in the country which reduces local sales of biodiesel – soy oil mixed with regular diesel.  The increased supply should bring down international prices for the product.

Last week, Parliamentarians from Argentina, the world’s largest exporter of soy oil, approved a measure that allows for a reduction in the amount of soy-based biofuel to be mixed with diesel for domestic use.

The measure was supported by President Alberto Fernández and must be sanctioned before the end of the month.

“The reduction in the volume of biodiesel used in fuels locally will reduce the use of soy oil in Argentina. So we will have more soy oil to be exported. This may impact international prices, considering the large share of the international market that Argentina has”, said Gustavo Idígoras, head of the CIARA-CEC Chamber of Agro-exporters.

Argentina shipped 5.36 million tons of soy oil last year, according to government data. India was the main buyer, receiving 53.4% ​​of sales.

China and Bangladesh came next, with 7.8% and 7.6% of the total, respectively.

The new law aims to guarantee the sustainable use of biofuels in diesel and gasoline and was approved by the Senate on Friday, after also passing through the Chamber of Deputies.

The measure provides for minimum use of 5% biodiesel – which may drop to 3% – in the diesel sold to the population, compared to 10% previously.

Source: Money Times

To read the full original article, visit the link: https://www.moneytimes.com.br/nova-lei-do-biodiesel-na-argentina-deve-impactar-precos-globais-do-oleo-de-soja/

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