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Soybean oil prices are rising sharply in foreign and domestic markets. According to Cepea researchers, this scenario is linked to expectations of firm demand from the biodiesel sector. On the supply side, Argentina (the world's largest exporter of soybean oil) is expected to make only 3.75 million tons of the coproduct available to the global market this season, according to USDA estimates, the lowest quantity in 22 years.
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According to data released by Cepea, the lower Argentine supply, in turn, is due to the drop in soybean production in the country, as a result of the unfavorable climate during the oilseed cultivation period. Thus, market agents expect greater global demand for the derivative in the United States and Brazil. This could increase the dispute between domestic and foreign consumers, as the USDA projects that domestic demands in both countries will be records in the 2022/23 harvest.
Source: Aline Merladete | agrolink
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