Argentine ethanol production seen at 11.2 billion liters while biodiesel remains steady

In Argentina, the USDA Foreign Agriculture Service expects ethanol production to increase to 1.12 billion liters in line with the E12 blending mandate while biodiesel production will reach a record 3.05 billion liters. Ethanol consumption is seen reaching 1.1 billion liters to achieve a 11.7% blend, split between sugarcane and corn feedstocks, with the industry pushing the government to boost the blend to 15%. The government, however, is looking to follow in Brazil’s footsteps with a gasoline blend as well as flex-fuel availability.

For biodiesel, the blend should reach 9.7% while the USDA FAS estimates exports will remain steady from last year’s at 1.7 billion liters, most of that going to the US.