In any case, the data is more than encouraging, as highlighted by the Rosario Stock Exchange: “The export performance of the biodiesel complex is undergoing a recovery in the rhythm of shipments abroad, while the foreign currency received reflects a strong rise compared to previous years. To account for the magnitudes, we must highlight that, according to INDEC data, exports until August reach 913,000 tons, with an income of US$1,363 millionyielding an average of monthly shipments of 114,000 tons for a value of u$s1,492/t.
These data can be related to the year 2018 in terms of monthly tons (116,000 tons were then), while the price per ton is the maximum in at least 10 years. If the annual export rate is maintained, 2022 could end with total biodiesel exports of 1.37 Mt (just below 2018), although foreign exchange earnings would exceed US$2 billion, a maximum in at least a decade.”
In this framework, it is important to note that biodiesel has a greater export insertion, unlike bioethanol whose demand is practically centered on the domestic market. Although the Argentine demand for biodiesel is governed based on legal regulations and the allocation of quotas by companies, the domestic market makes purchases equivalent, in general terms, to less than 50% of production.
More specifically, the participation of exports in the last 5 campaigns shows an average of 60.4%with a minimum of 51.3% in the 2017/18 campaign, while the maximum relative export performance of this cycle occurred in the 2020/21 harvest, reaching a share of 74.4%.
As far as bioethanol is concerned, the production outlook for the sector until about the middle of this year has been encouraging for part of the generation of this biofuel. Taking into account that bioethanol can be produced with both sugar cane and corn, it is possible to affirm that the participation of corn during the 2014-2021 period was between 50% and 60% of the total production.
Nevertheless, 2022 is close to resulting in the highest relative performance of corn bioethanol, since, until July, 64% of production comes from cereal-based biofuel. This fact is due both to the lower production of sugar biofuel, and to the higher results of the cereal sector.
“Although in recent years the production of bioethanol from corn was below the 2018 record when 586,000 m³ were produced, in 2022 a production rate has been reached that indicates that this record could be broken.
In fact, 4 years ago, at this time of the year, 342,000 m³ had been produced, while in the January-July 2022 stretch, 384,000 m³ were reached, exceeding the previous historical maximum by 12.3%, while the increase compared to the first 7 months of 2021 is 32.4% “, advance from the Rosario entity.
Finally, by way of closing from the Rosario Stock Exchange they detail: “The local biofuel market is shaping up to conclude 2022 with a good general development.
On the one hand, the corn bioethanol production, focused on the local market, maintained a historically high rate in the first seven months of the year. Likewise, its input/output ratio remains above 2021 valuesallowing to predict better productive conditions.
As a counterpart, biodiesel, whose main destination is export, enjoys high prices in historical terms and the tons shipped so far this year reflect a recovery compared to previous years, allowing exports to be in tune with 2018 in tons and foreign exchange earnings that can mark a new maximum for our country.”
Source: Ambito
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