A Brazilian biodiesel producer has firmed an import of 15,000 mt of soybean oil from Argentina for loading still in September as domestic prices for the vegetable oil have been above export parity, sources told S&P Global Platts.
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Details such as the price of the purchase were not disclosed.
Soybean oil imports by Brazil have surged this year after the country's oil and biofuels regulator, or ANP, authorized late 2020 the use of imported feedstock for biodiesel production. The vegoil is the main raw material for the biofuel's production in the country.
Brazil officially imported 86,129 mt of soybean oil in 2021 through Aug. 31, far above the 22,118 mt in the same eight months in 2020, according to data from the Ministry of Agriculture.
The Brazilian demand for soybean oil in September and October has been considered higher in comparison to the previous months as the mandatory biodiesel blend into diesel was raised to 12% for such a period, from 10% from May to August.
The auction that secured biodiesel supply for September and October, for example, traded 1.3 billion liters of the biofuel, from 1.10 billion liters traded in the prior auction that secured product for July and August.
S&P Global Platts on Sept. 13 assessed the Brazilian FOB Paranagua soybean oil price for October loading at $1,307.34/mt, up by 52% on the year.