The Brazilian government has temporarily reduced its biodiesel blending requirement for diesel fuel from 13% to 10% due to strong demand for soyabeans, Reuters reported from a Mines and Energy Ministry statement on 9 April.
About 70% of Brazil's biodiesel is produced from soyabean oil with the remainder coming from bovine tallow and other oils, according to the ministry.
Brazil was projecting record soyabean production this season of about 136M tonnes but demand was high and biodiesel prices had skyrocketed recently due to high soyabean prices, Reuters wrote.
Low soya stocks in the USA and growing consumption in China had also led to tight supplies, the ministry statement said.
The government had praised Brazil's national biofuels production programme, saying it had helped cut greenhouse gases while reducing dependence on diesel imports, and said it hoped to restore the mix to 13% as soon as possible.