The 75th biodiesel auction negotiated 1.19 billion liters to meet the 10% blend in September and October, with the average price rising 43.6% compared to the auction to meet the previous two months, regulator ANP was informed this Monday.
The average negotiation price was 5,043 reais / liter, without considering the acquirer's margin, and the total value negotiated reached the level of 6 billion reais, reflecting an average premium of 20.64% when compared to the weighted average of Maximum Prices of Reference.
The sharp rise in price occurred despite the government having provisionally reduced the percentage of the mixture from 12% to 10%, due to high prices for soybeans, the main raw material used to produce biofuel.
The L75 auction was held after much controversy and a legal dispute between the government, ANP and biodiesel producers.
The process to meet the September/October two-month period was carried out to meet a mandatory blend in force in the country of 12% biodiesel without diesel.
But due to an alleged lack of raw material, the government ordered a provisional reduction in the blend to 10%, which angered the companies producing the biofuel.
{module 442}
The previous one was certainly canceled by the ANP amid complaints from distributors of high biofuel prices.
After a legal dispute, the companies agreed to participate in the auction without further legal action, through an agreement with the government that provides for the formation of a working group with the private sector to address the debater's impasses, including questions about the supply of raw materials.
In Brazil, more than 70% of biodiesel is produced from soybean oil, an oilseed that has been in high demand for export this year, mainly by China.
Together with the exchange rate, this has increased costs in the biodiesel sector, which ends up impacting distributors and buyers of biofuel for blending.
Request for negotiation of the entire volume available in the stages to comply with mandatory mixing, were not eliminated as stages for voluntary mixing, added the ANP.
The traded volume was slightly above that of Ubrabio, based on preliminary data.
Source: Notícias Agrícolas
READ TOO:
{module 441}
