Brazilian biodiesel sector gets government boost

After discussing the Brazilian ethanol industry a few weeks ago, we will return to a similar subject this week, as the country's biofuels sector was once again in the news recently.

Today, we will look at the biodiesel and renewable diesel side of the market, as recent government policy decisions have potentially altered the outlooks for these sectors.

Brazil's National Energy Policy Council (CNPE) recently approved an increase in the percentage of biodiesel in diesel blends from 14% to 15% in August, after previously rejecting the same proposal earlier this year.

In February, the council decided against increasing the rate, citing a potential increase in food prices that could have negatively impacted President Luiz Inácio Lula da Silva's approval ratings. At the time, the group said the rate would be held...