Brazil lifts ban on imported soy products for biodiesel
Brazil has lifted a ban to allow domestic biodiesel producers to import soybeans and soybean oil to make the fuel.
The USDA’s Foreign Agriculture Service reports this is another sign of Brazil’s need to import soybeans after over exporting the commodity this year. The report says the policy move highlights their government’s rising concern about spiking consumer inflation as soybean oil prices have been spiraling because of dissipating stocks.
Brazil did not specify how long the ban would be lifted, indicating a degree of uncertainty for their importers.
In the last few years Brazil has progressively increased the mandatory blend rate for biodiesel supplied to the domestic market, most recently upping it to 12% in March. Since then, they have temporarily lifted that mandate twice due to the lack of available supplies.