Abiove raises forecasts on exports of soybeans and soybean oil from Brazil in 2021
14.06.2021 (www.explica.co) - SAO PAULO (.) – Brazil will export more soybeans and soybean oil than expected in 2021, after the country provisionally reduces the mandatory mix of biodiesel in the composition of diesel, the Brazilian Association of Vegetable Oil Industries said on Monday ( Abiove).
Faced with lower demand for oil, the main raw material for biodiesel, soybean processing in Brazil in 2021 was revised to 46.5 million tons, 300,000 tons below the forecast issued in May. Volume will also drop 0.7% from 2020 levels.
“The reduction in soybean crushing is due to lower domestic demand for soybean oil, which in turn reflects the reduction of the mandatory blend of biodiesel in diesel to 10% (B10) in auctions L79 and L80” Abiove chief economist Daniel Furlan Amaral said in a note.
With lower demand for processing, the sector will expand exports of soybean oil and grains.
The current estimate is that soybean oil exports will reach 1.2 million tons in 2021, an increase of 20% compared to the previous projection and 8% compared to 2020.
Abiove also raised its forecast for soy exports for 2021, to 85.7 million tonnes, 100,000 tonnes above the previous estimate.
At the same time, the association maintained its projection for this year’s soybean harvest in Brazil at 137.5 million tons.
(Reporting by Roberto Machel. Edited in Spanish by Marion Giraldo)