South American soybean oil exports constrained by growth in biofuel use
Rising biofuel use curbs South American soybean oil exports
(Agricultural Wealth Network) According to the U.S. Department of Agriculture, Brazil will implement a 5% biofuel blending policy starting in 2010, which will increase domestic soybean oil consumption.
In Argentina, soybean-biofuel exports this year rose from 55,000 tons three years ago to more than 1 million tons, 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 seek soybean oil supplies, or switch to other vegetable oils such as palm oil.
As of October 29 , total U.S. soybean export sales to China had reached 14.2 million tons, compared with 7.6 million tons in the same period last year. Total U.S. soybean export sales had reached 23.5 million tons, compared with 15.1 million tons in the same period last year.
In Argentina, soybean-biofuel exports this year rose from 55,000 tons three years ago to more than 1 million tons, 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 seek soybean oil supplies, or switch to other vegetable oils such as palm oil.
As of October 29 , total U.S. soybean export sales to China had reached 14.2 million tons, compared with 7.6 million tons in the same period last year. Total U.S. soybean export sales had reached 23.5 million tons, compared with 15.1 million tons in the same period last year.