Oct 22, 2010
More than Half of Soy Oil in Mato Grosso Used for Biodiesel
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Biodiesel production in Mato Grosso, which is already the largest producer in Brazil, is expected to increase six fold over the next five years from 285,000 cubic meters produced in 2010 to 1.8 million cubic meters expected to be produced in 2015. As a result, more than half of the soybean oil produced in the state is currently being used to produce biodiesel and that percentage is expected to continue increasing. Currently, 80% of the feedstock used for biodiesel production in Brazil is soybean oil.
As the percentage of soybean oil used in biodiesel production increases, the soybean acreage of the state is not expected to increase significantly in the near future. Only moderate growth in soybean acreage is expected in the state over the next five years due to a renewed interest in cotton and the fact that some of the prime soybean producing municipalities are already near capacity for soybean production.
Early estimates were that the 2010/11 soybean acreage in Mato Grosso would increase 24,000 hectares from 6.217 million hectares planted in 2009/10 to 6.241 million hectares in 2010/11. But, recent reports indicate that as much as 100,000 hectares of soybeans in the state may be switched to cotton production due to delays in planting the soybeans. Total soybean production in the state is expected to hold even at 18.7 million tons due to the delayed planting in 2010 and the fact that the weather during the 2009/10 growing season was considered excellent.
According to the consulting firm CerealPar, the total Brazilian soybean production in 2010/11 may hold steady to last year at 69 million tons even though the soybean acreage may increase 2%. Soybean yields are expected to be lower in 2010/11 compared to the record yields achieved in 2009/10.