Brazil's soybean crush 3.3% down in August: Abiove

Brazil's soybean crush reached 3.3 million tons in August 2021, an annual decrease of 3.3%, according to monthly statistics from the Brazilian Association of Vegetable Oil Industries (Abiove) on the country's soy complex, which were updated this Thursday.

Last year, crushing levels reached 3.1 million mt in August and totaled 46.8 million mt through 2020.

Abiove maintained its forecast of 46.5 million mt for the full year 2021.

From January to August, the crushing level decreased 1.5% on the year, to 26.6 million mt after the government intervened in the country's biodiesel mixture and cut the mandated blend level in response to high prices, Abiove stated.

On September 13, the Brazilian government reduced the mandatory blend of biodiesel from13% to 10% of the overall diesel fuel supply - a standard known as B10 - in the last auction, on September 29, where the volumes for November and December were sold.

The government justified the reduction as an attempt to contain the high fuel prices in the country.

Throughout 2021, the government had raised the mixture from 10% to 12%, and then to 13%.

Abiove increased its estimates for domestic consumption of soybean meal to 17.9 million mt versus 17.4 million mt forecasts in September.

Abiove lifted its estimates for domestic consumption of soybean meal to 17.9 million mt versus 17.4 million mt forecasts in September. Last year they’ve reached 18.9 million mt.

Production remained expected to reach 35.5 million mt, versus 36 million mt in 2020, and exports at16.9 million mt in 2021, the same level as last year.

The association kept its soybeans production forecast at 137.9 million mt, versus 127.9 million mt in 2020.

Soybeans exports forecast remained at 86 million mt, versus 82.9 million mt last year.

The association collects data from 85% of its members.