Brazil’s biodiesel production surge

Biodiesel production in Brazil and Argentina will rise 'sharply' this year, increasing the demand for soyabean oil as a raw material, Oil World reported.

Brazilian biodiesel output will increase to 3.1 million metric tonnes this year from 2.56 million tonnes in 2013, with soyabean oil used as the main feedstock.

From July, Brazil's government has mandated biodiesel to account for 6% of diesel fuel, which will rise to 7% in November.

A 1% point increase in the Brazil biodiesel mandate is equivalent to 45,000 to 50,000 tonnes of additional demand for fuel each month. Argentina's biodiesel output is expected to reach 2.45 million tonnes from 2 million tonnes.