How to trade in futures contracts for soybean raw materials

Soybeans are used in everything from raw materials for poultry to vegetable oil production. There are many soybean extracts that you can buy in commodity markets: soybean itself, soybean oil, and soybean meal. The topic of this article is how to trade soybean raw material futures contracts.


Although most soybeans are used to extract soybean oil (used as a vegetable oil for cooking) and soybean flour (mainly used as agricultural raw materials), whole soybeans are also a commodity. Soybeans are edible, and if you’ve ever been to a sushi restaurant, soybeans may have been served as an appetizer, under the Japanese name edamame.

The United States dominates the soybean market and accounts for more than 50 percent of total global production. Brazil ranks second, with about 20 percent of the market. Harvesting in the United States begins in September, and soybean production is cyclical.

Soybean ant price at CME 2001-2010.

The most direct way to trade soybeans is through the Chicago Mercantile Exchange (CME) soybean futures contracts:

Contract code: S.

• Electronic tape (CME Globex): ZS

Contract size: 5000 bushels

• Basic Raw Materials: Premium No. 1, no. 2 nor. 3 yellow soybeans

• Price Fluctuations: $0.0025 per bushel ($12.50 per contract)

• Hours of Operation: 9.30 to 13.15. Open cry, 6:31 am to 6:00 pm (Chicago time)

• Trading months: January, March, May, July, August, September, November

Soy oil

Soybean oil is extracted from the soybeans that you and I know as vegetable oil. Soybean oil is the most widely used cooking oil in the United States and around the world, due in part to its healthy nutritional properties. It contains about 85 percent unsaturated fat and very little saturated fat, which makes it attractive to health-conscious consumers.

In addition to its gastronomic uses, soybean oil is becoming an increasingly popular additive in alternative energy source technology, such as biodiesel. An increasing number of cars in the United States and abroad, for example, are equipped with engines that allow them to convert from regular diesel oil to soybean oil during operation. Due to the car’s economical mileage and low environmental impact, these soybean oil cars, known as frybrids, are becoming more and more popular.

The demand for soybean oil has increased in recent years as the demand for clean-burning fuels increases and because automotive technology is more able to meet the use of such biofuels. According to the Commodity Research Bureau (CRB), soybean oil production increased from an average of £15 billion in the mid-1990s to more than £22 billion in 2003.

If you want to trade soybean oil, you should go through the Chicago Board of Trade (CBOT), which offers the standard contract for soybean oil. Here is the contract information:

• Kontraktssymbol: BO

• Electronic tape (CME Globex): ZL

Contract Size: 60,000 GBP

• Basic Raw Materials: Premium Crude Soybean Oil

• Price Fluctuations: $0.0001/pound ($6.00 per contract)

• Hours of Operation: 9.30 to 13.15. Open cry, 6:31 am to 6:00 pm (Chicago time)

• Trading months: January, March, May, July, August, September, October, December

soy flour

Soy flour, like soybean oil, is extracted from soybeans. Basically, what is left after soybean oil is extracted from soybeans can be converted into soybean powder. Soy flour is a feed with high protein and high energy content that is mainly used as raw materials for cattle, pigs and poultry.

To invest in soy flour, you can trade CME soy flour futures. Here’s the information to help you get started with this contract:

Contract Code: SM

• Elektronisk Index (CME Globex): ZM

Contract size: 100 tons

• Basic raw materials: 48% protein soy flour

• Volatility: $0.10/ton ($10.00 per contract)

• Hours of Operation: 9.30 to 13.15. Open cry, 6:31 am to 6:00 pm (Chicago time)

• Trading months: January, March, May, July, August, September, October, December

Other ways to trade soybeans

Another usually simpler way to trade commodities is through a CFD broker.

Buying soybeans from CMC Markets

CMC . Markets It is a global company with a trading platform for online trading of derivative financial instruments, primarily trading CFDs on stocks, indices, commodities, ETFs, currencies and cryptocurrencies. to CMC . Markets.

Buy soybeans from AvaTrade

AvaTrade It is a forex and CFD broker based in Dublin, Ireland. Through its own trading platforms and mobile apps, the company offers trading in many different markets, including currencies, commodities, stock indices, stocks, exchange-traded funds, bitcoin, and bonds. to AvaTrade .

Buy soybeans from IG

IG is a leading company that allows you to trade multiple exchange-traded funds and all global commodities via CFDs.

also IG However, trade progress in soybean. Until IGs Checker.

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