Increased use of biofuels restricts the export of soybean oil from South America

According to the United States Department of Agriculture, Brazil will implement a 5% biofuel blending policy from 2010, when domestic soybean oil consumption will increase.

In Argentina, soybean-biofuel exports rose to more than 1 million tons this year from 55000 tons three years ago, mainly due to strong demand from the European Union.

South American soybean oil exports in 2009 are likely to be much lower than they were three years ago, as more and more soybean oil is used for fuel production.

Importers dependent on South American soybean oil may have to turn to other places such as the US for soybean oil supplies or switch to other vegetable oils such as palm oil.

As of Oct. 29, U.S. soybean exports to China totaled 14.2 million tons, compared with 7.6 million tons in the same period last year. Total U. S. soybean export sales have reached 23.5 million tons, compared with 15.1 million tons in the same period last year.