CANBERRA- Chicago soybean futures held steady on Tuesday after big gains in the previous session as concerns over the US weather outlook and a reassessment of Donald Trump’s chances of winning power prompted short-covering by speculators.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was flat at $10.69 a bushel after rising 3.2 percent on Monday, the biggest one-day increase since June last year.
Soybeans hit a four-year low of $10.32 last week amid ample supply and anticipation that Trump could renew his trade war with top soy importer China if he regains the presidency.
But US President Joe Biden’s decision on Sunday to step aside has changed the mood around the election, with Vice President Kamala Harris receiving a flood of endorsements and cash.
“It’s more fund short covering,” said Vitor Pistoia, an analyst at Rabobank in Sydney, adding that forecasts for hot, dry weather in the United States were playing a role.