US soyabean futures bounced up more than 3.6% on Tuesday, after plunging to a decade low a day earlier, as planting delays in the Midwest crop belt and optimistic comments from the White House over the future of US-China trade talks sparked a round of short-covering, analysts said.
Chicago Board of Trade (CBOT) July soyabeans settled up 29 cents at $8.31-1/2 per bushel on Tuesday, rising to $8.38 a bushel in midday trading. It was the biggest single-day climb for the most-active soyabean contract on a continuous chart since July 6, 2018.
A day earlier, soyabean futures prices hit the lowest for a most-active soyabean contract on a continuous chart since December 2008.
The rally also saw CBOT July soyameal ending the day up $10.70 at $298.00 per short ton, and CBOT July soyaoil settling up 0.39 cent at 27.00 cents per pound.
US and European stocks also regained ground on Tuesday after President Donald Trump downplayed the US-China trade war as "a little squabble" a day after a spike in tensions between the world's two largest economies rattled financial markets.
All three CBOT grain markets rose after the US Department of Agriculture (USDA) reported late on Monday, after the markets closed, that the US planting pace for corn and soyabeans this spring was slower than expected amid widespread weather delays.
US farmers had seeded 9% of their 2019 corn crop by Sunday, lagging the five-year average of 29% and behind the average estimate in a Reuters analyst survey of 15%.
The turnaround in prices also "came as traders recognized the significance of the delays, causing selling to dry up, short-covering and bottom-picking to begin and momentum flipped," INTL FCStone chief commodities economist Arlan Suderman said in a note to clients.
Commodity funds have built sizable net short positions in CBOT corn, soyabean and wheat futures, leaving the markets vulnerable to short-covering rallies.
The USDA said on Tuesday that private exporters sold 180,000 metric tonnes of US soyabeans for delivery to unknown destinations during the 2018-2019 marketing year, which began September 1, 2018.
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