Biodiesel DAP Paulínia price reaches record high for 2024

The Biodiesel DAP Paulínia price surged this week to its highest level since January. On Oct. 23, the price rose 30% from the same period last year when the blending mandate was 12%. This upward trend continued, reaching a new record of Real 6,115/m³ on Oct. 24.

The last comparable peak occurred on Nov. 29, 2022, at Real 6,225/m³ with a 10% mandate, now increased to 14%.

On Oct. 24, the difference between Biodiesel Spot prices and the ULSD S10 Santos Import Parity Price stood at Real 2,677/m³, while Petrobras diesel prices in Paulínia remained stable.

Given the average high prices for soybean oil this week, the ongoing intercrop season, and a soybean oil shortage in Mato Grosso, fees for the sixth bimester are anticipated to rise, suggesting that recent trades may be among the last at current lower fees.

Despite the higher prices, there was heated activity on the spot market at the end of the fifth bimester, totaling 2,270 cu m of biodiesel traded from Sept. 17-23 compared with 580 cu m the previous week.

Last, producers and distributors have been negotiating contracts for the last bimester of 2024 in the past weeks, and have by Oct. 25 to report on all volumes contracted to the National Agency of Petroleum, Natural Gas and Biofuels (ANP).