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Biodiesel auction sells 1.19 billion liters; price rises 43.6%, points ANP

Posted by Marina

The 75th biodiesel auction negotiated 1.19 billion liters to serve the 10% mixture in September and October, with the average price rising 43.6% compared to the event to meet the previous two months, informed the regulator ANP on Monday .

The average trading price was 5,043 reais / liter, without considering the acquirer's margin, and the total traded value reached the level of 6 billion reais, reflecting an average premium of 20.64% when compared to the weighted average of Prices Reference Maximum.

The sharp rise in price occurred despite the government having temporarily reduced the percentage of the mixture from 12% to 10%, due to high prices for soybeans, the main raw material used for the production of biofuel.

The L75 auction was held after much controversy and a legal dispute between the government, ANP and biodiesel producers.

Certainly to meet the September / October two-month period, of course, it was carried out to meet a mandatory mixture in force in the country of 12% biodiesel without diesel.

But due to an alleged lack of raw material, the government determined the provisional reduction in the blend to 10%, which irritated the companies that produce the biofuel.

The previous one was certainly canceled by the ANP amid complaints from distributors of high biofuel prices.

After a legal dispute, the companies accept to participate in the auction without any new lawsuits, through an agreement with the government that provides for the formation of a working group with the private sector for the debater's impasses, including questions about the supply of raw material.

In Brazil, more than 70% of biodiesel is produced from soybean oil, an oilseed that has been in great demand for export this year, mainly by China.

Together, with the exchange rate, this has raised the costs of the biodiesel sector, which ends up impacting as distributors, buyers of the biofuel for the realization of the mixture.

Request for negotiation of the entire volume available in the stages for meeting mandatory mixing, have not been eliminated as stages for voluntary mixing, added the ANP.

The volume traded was slightly above the bank by Ubrabio, based on preliminary data.

Source: Notícias Agrícolas