Brazil to Maintain Biodiesel Blend Mandate at 14%

Brazil would not increase the local biodiesel blend to 15% in March as expected but would keep the current biodiesel blend at 14%, Energy Minister Alexander Silveria told Reuters.  Bulk of biodiesel in the country is produced from soybean oil. The current blend would remain at 14% until further deliberations, which can be taken at any time, according to Silveria.  He said the move was necessary following concerns about food inflation.

According to the Brazilian Association of Vegetable Oil Industries (Abiove), the decision to keep the B14 blend was based on the price of soybean oil.  However, the organization said prices for packaged soybean oil, as well as biodiesel, were already falling due to Brazil’s record soybean harvest.  It expects the government to review its decision “as quickly as possible.”