Brazilian Soybean Oil Supply Tightens as Peak Crush Season Ends

Brazilian soybean oil supply tightens as the peak crush season ends, causing domestic prices to recover and reducing exports.

The Paranaguá reference price gained nearly 5% in a month, with the discount to Chicago nearly halving, according to Isabela Garcia, Senior Market Intelligence Analyst at StoneX Brazil. 'This follows the seasonality of the Brazilian market,' she says.

Brazilian biodiesel demand reaches its seasonal high between August and October, pulling more soybean oil into the domestic fuel market. Diesel sales accelerate from August to October, making it the period with the strongest biodiesel demand of the year.