Gains in oil are linked to agricultural markets because crops are used to make ethanol and biodiesel fuel, traders said. Analysts expect the US Agriculture Department, in a weekly report due on Monday, will rate 54% of the US soyabean crop as good to excellent as of Sept. 15. That would be down from 55% previous week.
The USDA earlier on Monday said private exporters reported the sale of 256,000 tonnes of soyabeans to China, the second trading day in a row that it announced a sale to the world's biggest buyer of the oilseed. China, the world's biggest soyabean importers, has slashed purchases from the United States since their trade war began last year. US and Chinese deputy trade negotiators are expected to meet on Friday, with senior negotiators likely to meet about a week and a half later.