Soybean prospects have been moving solidly higher as of late. The explanation behind these moves higher is because of the accompanying reasons. Food costs are feeling inflationary pressure, supply levels have been tightening (in part because of China retaining cargoes to meet their economic trade commitments), an unfavorable climate, and the coming La Nina phenomena is expected to worsen the situation.
Well another possible factor to help US Soybeans is that US farmers may profit well from the end of Trump’s Presidency. Look at the diagram underneath and you can see that trade war activities strongly pushed down the Soy exchange from the US. A Biden triumph should mean the conclusion to America’s ongoing protectionist policies under President Trump and open up the exchange channels to improve the situation for Soy farmers.
This should mean Soybeans are purchased on dips into the US decisions as long as Biden remains ahead in the polls.
Taking a look at the chart below you can see the key area of support identified which would be a retest of the daily trend line marked on the chart below. This looks like an ideal place for price to find support. Be aware that one of the mains risks to this outlook is if President Trump starts to gain a lead in the polls. This will mean that the market will become risk-averse on a potential return to a trade war with China and US protectionist policies.