Futures contracts of all components in the edible oil basket extended gains on the domestic exchanges.

Soybean contracts on the National Commodity & Derivatives Exchange rose tracking strength in key contracts on Chicago Board of Trade.

After hitting a 10-month low early this week on CBOT, the July contract of soybean rose due to easing tensions between the US and China after a year long trade war. The US is the largest producer of soybean, while China is the top buyer.

CBOT Soybean futures closed the session with most nearby contracts 2 to 3 1/2 cents lower.

Meal futures were up 30 cents/ton, with May soy oil 10 points lower.

A report from Reuters states that China had backtracked on many of their commitments in a draft trade agreement sent to the US on Friday.

That drove President Trump’s decision to increase the 10% tariff on $200 billion of Chinese goods to 25%, which goes into effect this upcoming Friday.