Ethanol futures traded higher for the fourth straight session on Monday, ahead of this week's US-China trade summit, while soybean oil prices fell in early-week trading.
The Nymex October ethanol futures contract settled 1.43% higher on Monday at $2.13 per gallon.
The Chicago Board of Trade October soybean oil futures contract settled 1.39% lower at 67.37 cents per pound on Tuesday, while the CBOT November soybean futures contract closed 0.19% lower at $13.25 1/2 per bushel.
Susan Stroud, Founder and Chief Executive Officer of No Bull Agriculture, said soybean oil continues to take it on the chin as meal leads the complex.
Oil, meanwhile, is almost being sold by default as soybean meal gains value within the crush, according to the analyst.
"I think it may be getting hit a little too hard at this point, and eventually those lower prices should attract buying. The difficult part is timing. We've seen a significant influx of imported feedstocks over the past couple of months, which gives the market more supply to work through before soybean oil can regain its footing, especially as we see energy markets tap the brakes," Stroud said.