Soy Oil Market Shows Initial Optimism on US Crop Trade to India

US soybean oil futures climbed as much as 3% on Tuesday after President Donald Trump unexpectedly announced a trade deal with India, in a sign of optimism that a truce could open the way for billions of dollars of American products to hit the world’s most populous nation.

India is a major producer of staple crops, but vegetable oil is one of the few major farm products it imports in significant volumes. Shortly after Trump posted the news — confirmed by Prime Minister Narendra Modi — soybean oil’s premium to Malaysia palm oil widened to the most in over a week.