Major biofuel feedstocks slipped mid-week following declines in crude oil prices, although expanding biofuel policies to enhance supply security provided demand upside.
The Nymex October ethanol futures contract ended a three-session rally and dipped 0.23% to about $2.19 per gallon on Tuesday, while the October soybean oil contract on the Chicago Board of Trade eased 0.77% to 66.85 cents per pound.
The US state of Michigan is considering amending a state law to allow year-round sales of E15 following the signing of the E15 Clean-Up Act in California. In Indonesia, the government is planning a gradual rollout of bioethanol, beginning with an E10 blend in 2027 before advancing to E20 in 2028 and to E50 thereafter, to curb gasoline imports.
In soybean oil, "US biodiesel policies have driven the growth of soybean oil demand, thereby significantly boosting soybean crushing demand," market intelligence provider SunSirs said, adding that demand for US soybeans has risen rose amid Chinese buying.
In India, soybean oil purchases could increase 4.2% year over year to a record 5.7 million metric tons in the 2025/26 marketing year, an industry official told Reuters. Palm oil imports could rise 5.5% to 8 mmt.
Malaysian crude palm oil extended losses for a fifth straight session on Wednesday, slipping due to rising inventories and slow exports. The October contract on the Bursa Malaysia Derivatives exchange dropped by a further 0.82% to 4,601 Malaysian ringgit ($1,128.28) per metric ton to hit its lowest since mid-July.