Brazilian biodiesel producers face lower logistics margins for November–December
In Brazil, Energy News reports Brazilian biodiesel producers have negotiated lower logistics margins for the November–December 2026 contracting period, despite expectations of seasonal increases during the soybean off-season. Regional contract differentials fell by more than R$30 per cubic meter compared with September–October, turning negative across all major producing regions. The largest reduction was R$70/m³ in the Sorriso–Nova Mutum region of Mato Grosso. Accumulated distributor inventories, limited diesel availability and rising soybean oil costs weakened producers’ negotiating position. Currency depreciation also increased feedstock costs. Some producers restricted sales to volumes covered by previously purchased soybean oil, while others reduced prices to meet contracting obligations. Market participants expect margin pressure to continue into early 2027.
Category: Fuels
