Brazil’s National Energy Policy Council (CNPE) approved increasing the percentage of ethanol mixed in gasoline to 30% from 27%, and the amount of biodiesel in diesel to 15% from 14%. The changes take effect Aug. 1.
The 11.1% increase in the ethanol mandate will require more domestic corn use for fuel production. Despite a record corn crop this year, Brazil expects exports to fall 4.5 MMT (11.7%) from last year to 34 MMT.
The 7.1% increase for the biodiesel mandate will also require more domestic soybean use, though exports are still expected to be record-large this year.
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