Soybean is an important agricultural product for both grain and oil. Due to its high protein and oil properties, soybeans are mainly squeezed into soybean oil and soybean meal in the whole world. After initial processing, the soybean oil is further refined for cooking oil, margarine, mayonnaise and salad dressings, and is also used in industrial chemicals. Soybean meal formed by soybean oil extraction is a major high-protein feed ingredient for poultry and livestock. It is also further processed into human food, such as soy grits, flour and prepared foods, which are important components of meat and dairy substitutes such as soymilk and tofu. Over the years, the world’s soybean production has been the highest among all types of oil crops, and its demand has also been growing. The United States is the world’s largest soybean producer and exporter with more than 150 varieties. They adapt to different soils and climates and extend the Canadian border from Mississippi. And soybeans are the dominant category in the commercial market. Therefore, soybean cultivation, growth and harvesting in the United States have a major impact on world prices.
Factors affecting prices:
Supply and demand
Seasonal factors
Climatic conditions
Squeezing soybean profit
Substitute
Government agricultural policy
The world produced over 12 billion bushels soybeans in the 2017/18 crop year, yet 21 times that treaded on the futures exchange.
CBOT’s Soybean Futures (ZS) is a physical delivery contact that leverages liquidity through central limit trading order, bulk trading or request for cross-plating (RFC).
The advantages of soybeans trading:
Price discovery
Manage price risks associated with buying and selling soy products.
Arbitrage and spread trading opportunities associated with other grains, oilseeds, livestock and ethanol.
Transparent market with abundant liquidity.
