Ethanol widened its divergence from other major biofuel feedstocks as it extended gains on Monday amid growing availability of ethanol-blended gasoline in the US.
The Nymex October ethanol futures contract rallied for a third straight session, rising by a further 1.39% to $2.19 per gallon on Monday, following the signing of the E15 Clean-Up Act in California to remove barriers to E15, increasing availability.
The October soybean oil contract on the Chicago Board of Trade fell 0.82% to 67.76 cents per pound in Tuesday's early trade, in line with crude oil price moderation. Prices also declined as soybeans eased ahead of the US-China summit, with the November contract dropping 0.38% to $13.23 per bushel.
In Asia, the October crude palm oil contract on the Bursa Malaysia Derivatives exchange closed lower by 1.05% to 4,639 Malaysian ringgit ($1,137.60) per metric ton on Tuesday, as reports showed a 12.8% month-over-month decline in Sept. 1-20 exports and a 21.3% rise in output.
Globally, biofuel production is projected to increase by 68% in 2030 from 2025 levels, with major economies including Brazil, India, Indonesia and the US "rapidly advancing new policies to increase the share of biofuels in transport fuels," according to think tank Chatham House.