Nearly 2 billion bushels of soybeans are crushed every year. During the crush process, soybeans are cracked to remove the hull and then rolled into flakes, which are then soaked in a solvent and put through a distilling process to produce pure crude soybean oil.
Soybean oil is the edible vegetable oil extracted from soybean seeds. According to the US agricultural services data information, it is the most popular and largely used cooking oils in the world. Lecithin, a product extracted from soybean oil, is a natural emulsifier and lubricant used in many foods, as well as commercial and industrial applications. As an emulsifier, it helps products maintain a smooth quality because it binds two disparate chemicals together. In recent years, the consumption of soybean oil has been increasing in Asian countries due to population growth and rising living standards. Today, soybean is one of the widely cultivated commercial field crops grown in the U.S, Brazil, Argentina, China, and India.
The availability of Soybean, Soybean Meal and Soybean Oil futures allows processors to protect themselves against rising soybean prices and the possibility of declining prices for processed oil and meal.
Contribution factors:
Output in major producer countries
Soybean oil stock
Countries’ demand for soybean oil
Changes in supply and price of substitute goods
Countries’ agricultural policies and tariff policies.
