Futures contracts of all components of the edible oil basket on the domestic exchanges traded lower. Extending weakness from the previous session, soybean contracts on National Commodity and Derivatives Exchange settled 0.3% lower today in line with the weakness in key contracts on Chicago Board of Trade.

Soybean prices slumped on the Chicago exchange as euphoria over US-China meet has fizzled out after the trade talks failed to iron out year-long trade worries between the world’s two top economies. The US is the world largest soybean producer and China the largest importer.

Back home, reports of above-normal rains in July raised hopes of improved sowing in the coming days, which weighed on soybean prices. India received 298.4 mm rains in July, 5% above normal for the month, an official with the India Meteorological Department said. Rainfall was above normal due to the revival of the monsoon current in central India.

Soybean futures fell 16 to 17 points in the front months. Most of that drop came following an announcement from President Trump that he intends to place a 10% tariff on the remaining $300 billion of Chinese goods. August soybean meal was down $5/ton, with soy oil 7 points lower.

This morning’s Export Sales update showed 143,006 MT of old crop bean sales for the week of July 25. That was well above the previous week’s net reductions and 52.8% larger than the same week last year. New crop sales totaled 305,508 MT in that week, still above the week prior with China buying 68,000 MT.

Meal sales totaled 160,069 MT, with soy oil at 14,865 MT. USDA’s Fats & Oils report indicated that 157.62 mbu of soybeans were crushed in June, down 7.04% yr/yr and below trade estimates. Brazil’s soybean exports during July totaled 7.821 MMT, which was a 23.3% drop from the same month last year.