The three main producers of soy in the world are, in the following order: the U.S., Brazil, and Argentina. However, soybeans were essential to Asian cultures for hundreds of years before Western cultivation began, and today China falls just outside of the top three producers into the number four slot. Farmers enjoy the benefits of planting soybean because it clears the field for other food crops and naturally fixes the nitrogen levels in the soil that otherwise inhibit the growth of some plants. In the U.S., soybean was not even used as a food product until after the 1920s, before which it was largely considered exclusively an industrial product.
|Soybean Futures Contract Specifications|
|Contract Size||5,000 bushels (~136 metric tons)|
|Price Quotation||Cents per bushel|
|Grade And Quality||#2 Yellow at contract price
#1 Yellow at a 6 cent/bushel premium
#3 Yellow at a 6 cent/bushel discount
|Trading Hours||Sunday – Friday 7:00 p.m. – 7:45 a.m. CT and|
|Monday – Friday 8:30 a.m. – 1:20 p.m. CT|
|Minimum Price Fluctuation||1/4 of one cent per bushel ($12.50 per contract)|
|Product Code||CME Globex: ZS|
|CME ClearPort: S|
|Listed Contracts||January (F), March (H), May (K), July (N), August (Q), September (U) & November (X)|
|Last Trade Date||The business day prior to the 15th calendar day of the contract month.|
|Last Delivery Date||Seventh business day following the last trading day of the month.|
|Settlement Procedures||Soybean Futures Settlement Procedures|
|Exchange Rules||These contracts are listed with, and subject to, the rules and regulations of CBOT.|
|Source: CME Group|
Soybeans are of one of the most active and popular markets to trade, and dominant oilseed in the U.S. According to the U.S. Department of Agriculture (USDA), the U.S. is the leading producer and exporter of soybeans, mainly exporting to China, EU, Japan, Mexico and Taiwan. Soybeans account for 90% of all oilseed production in the U.S. accounting for 44% of the world’s Soybean export in 2010 and 35% of the world’s Soybean production in 2010.
After corn, soybeans are the most planted crop with over 77.5 million acres planted every year, 80% of which are grown in the Upper Midwest. Soybeans are typically grown in a crop rotation with corn. Soybean planting season takes place in late Spring and then are harvested in early Autumn. They were also among the first crops to be bioengineered and receive commercial success, especially since most are resistant to herbicides. Soybeans make up the largest portion of biotech crops grown in the U.S.
Soybeans have two main byproducts — soybean meal and soybean oil. Soybean meal is a flour made by grinding the solid residue of soybean oil production and is primarily used for animal feed due to its high protein content. Soybean oil is a “vegetable oil” that is extracted by crushing soybeans. It is mainly used as cooking but is also used in an extensive list of food products. Soybean oil has also grown in popularity due to the introduction of Biodiesel.
Last updated October 2015
Recent Posts on Soybeans
- The Taylor Trading Technique and Today’s Buy Day in Soybean Futures (11/23/2015) - January soybean futures have been trading around support in the 850 area. Sunday night they attempted a downside breakout below that level; the rejection of the downside move proved to be a Taylor Trading Technique Buy day.
- Today’s Taylor Trading Technique Sell Short Day Setup in Soybean Futures (11/18/2015) - The grain futures are often good trading markets for trade setups using the Taylor Trading Technique. Today’s Taylor Trading Sell Short day for the soybeans was a good example.
- The Rath Overlay (Nov 13 2015) (11/16/2015) - Natural Gas continues to put in a small recovery bounce currently trading at $2.30, (Z5) mmBtu, Crude Oil holding at major support at $42.03 (Z5).