Futures contracts of most components in the edible oil basket, barring soybean, rose on domestic exchanges.

Shedding gains from the previous session, soybean contracts settled 0.5% lower on National Commodity and Derivatives Exchange due to low demand from crushing plants and soymeal exporters.

A sharp fall was, however, restricted due to gains in key contracts on the Chicago Board of Trade, and also because weak and late monsoon showers in the country are seen affecting output.

Soybean contracts rose on Chicago Board of Trade due to hopes of a thaw in the US-China trade war as President Donald Trump’s team is reportedly heading to China for face-to-face talks next week. The US is the world’s top grower of soybean while China is the world’s largest buyer.

Soybean futures ended the session with most nearby contracts 4 to 5 1/4 cents higher. August soybean meal was down 10 cents/ton, with soy oil 29 points higher.

USDA reported a cancellation of 100,000 MT of 18/19 soybean sales for Unknown Destinations this morning.

A wire report indicated China’s government has given tariff exemptions to 5 companies to purchase up to 3 MMT of soybeans from the US. In addition, US trade reps will be headed to Shanghai for face-to-face talks next week.

The weekly Export Sales update is expected to show a range of sales in the week of 7/19 of 100,000 MT in net reduction to 300,000 MT in sales, with new crop bookings at 100,000-300,000 MT. Meal is seen at 150,000-400,000 MT, with 8,000-32,000 MT for soy oil.