South American soybean oil exports constrained by growing biofuel use
Rising biofuel use curbs South American soybean oil exports
According to the US Department of Agriculture, Brazil will implement a 5% biofuel blending policy starting in 2010, at which point domestic soybean oil use will increase.
In Argentina, soybean-biofuel exports this year rose from 55,000 tonnes three years ago to more than 1 million tonnes, mainly due to strong demand from the European Union.
South American soybean oil exports in 2009/10 may be far below the level of three years ago, because more and more soybean oil is being used for fuel production.
Importers relying on South American soybean oil may have to turn to other regions such as the United States to buy soybean oil supplies, or switch to buying other vegetable oils such as palm oil.
As of October 29, total US soybean export sales to China had reached 14.2 million tonnes, compared with 7.6 million tonnes in the same period last year. Total US soybean export sales had reached 23.5 million tonnes, compared with 15.1 million tonnes in the same period last year.
In Argentina, soybean-biofuel exports this year rose from 55,000 tonnes three years ago to more than 1 million tonnes, mainly due to strong demand from the European Union.
South American soybean oil exports in 2009/10 may be far below the level of three years ago, because more and more soybean oil is being used for fuel production.
Importers relying on South American soybean oil may have to turn to other regions such as the United States to buy soybean oil supplies, or switch to buying other vegetable oils such as palm oil.
As of October 29, total US soybean export sales to China had reached 14.2 million tonnes, compared with 7.6 million tonnes in the same period last year. Total US soybean export sales had reached 23.5 million tonnes, compared with 15.1 million tonnes in the same period last year.