Argentina’s biodiesel industry may get boost from government…or not

In Argentina, the biodiesel industry is expecting the government to further lower export taxes on biodiesel during the next few months to help counteract falling fossil diesel prices that are making the renewable fuel less competitive. Apart from that policy shift, only lower soy oil prices will make much of a difference. But the government is fickle, constantly shifting policy that can make biodiesel competitive or uncompetitive from one day to another, which keeps the industry from being able to use futures markets to hedge prices.