Malaysian palm oil was little changed on Tuesday, despite rises in soybean oil and crude oil, amid stronger production and weaker exports.
The October crude palm oil contract on the Bursa Malaysia Derivatives exchange edged up 0.04% to 4,690 Malaysian ringgit ($1,150.10) per metric ton by Tuesday midday trade. The October soybean oil contract on the Chicago Board of Trade rose 0.26% to 68.50 cents per pound during the evening session.
In the first 20 days of September, Malaysian exports fell 12.8% from a month earlier while production rose 21.3%, "indicating emerging supply pressure," price reporting agency MySteel said, citing SGS data.
"This trend is expected to weigh on spot palm oil prices and exert downward pressure on future prices due to the bearish outlook," market intelligence provider SunSirs said.
"For this week, crude palm oil futures may trade within a range with a downside bias, influenced by lower crude oil prices," financial services firm Phillip Capital noted.
The Nymex October ethanol futures contract continued to rally for a third straight session, rising by a further 1.39% to $2.19 per gallon on Monday. The California government has recently signed the E15 Clean-Up Act, accelerating the availability of E15 fuel to customers.