Argentina Grains Sector Says Biofuel Blend Hike Could Boost Soy Crushing

by Maximilian Heath (Reuters/Successful Farming) Argentina's chamber of grains processors and exporters CIARA-CEC said on Thursday that an increase of the amount of biofuel in diesel would boost the soy crushing sector, though it called for the temporary measure to address fuel shortages to be made permanent.

The government announced on Wednesday that it would raise required biodiesel content in diesel blends in a bid to deal with a prolonged shortage of the motor fuel, especially for the important agricultural sector.

Gustavo Idígoras, the head of CIARA-CEC which groups companies in the industry, said that the measure was positive though called for it to be extended beyond a two-month period.

"We believe that it is a good step by the government, but it is a temporary step that we would like to make permanent," he said. "If the government extended this throughout the year, clearly that could increase crushing in Argentina."

According to a report from CIARA-CEC, 4.1 million tonnes of soybeans were processed in Argentina, some 70% of the installed capacity of the sector, though slightly below 73% a year ago and 83% in 2017. April and May are the peak months for activity. READ MORE