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.
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Soybean Futures Contract Specifications
|Contract Size||5,000 bushels (~136 Metric Tons)|
|Deliverable Grade||#2 Yellow at contract price,
#1 Yellow at a 6 cent/bushel premium,
#3 Yellow at a 6 cent/bushel discount
|Pricing Unit||Cents per Bushel|
|1/4 of one cent per bushel ($12.50 per contract)|
|Contract Months/Symbols||January (F), March (H), May (K), July (N), August (Q), September (U) & November (X)|
|Trading Hours||CME Globex (Electronic): Sun-Fri 7:00pm-7:45am CT
Mon-Fri 8:30am-1:15pm CT
Open Outcry (Trading Floor): Mon-Fri 8:30am-1:15pm CT
|Daily Price Limit||$0.70 per bushel expandable to $1.05 and then to $1.60 when the market closes at limit bid or limit offer. There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month.|
|Settlement Procedure||Physical Delivery|
|Last Trade Date||The business day prior to the 15th calendar day of the contract month.|
|Last Delivery Date||Second business day following the last trading day of the delivery month.|
|Product Ticker Symbol||CME Globex (Electronic): ZS (S=Clearing)
Open Outcry (Trading Floor): S
|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. According to the U.S. Department of Agriculture (USDA), the U.S. is the leading exporter of Soybean, accounting for 44% of the world’s Soybean export in 2010, and the major producer of Soybean, accounting for 35% of the world’s Soybean production in 2010.
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.
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Grain Futures Market News
- Wheat futures mark second day of losses: [May 06 09:30 AM] Wheat farmers in the biggest of South America's generators of the grain are poised to augment sowing this year, according to analysts and an advocacy group. Read more
- Soybeans climb after four consecutive sessions of losses: [Apr 25 04:06 AM] Conjecture about China moving forward with additional purchases spurred the price of soybean futures to climb on Thursday as the legume reversed four consecutive trading sessions of losses, according to Bloomberg. Read more
- Corn futures reverse two days of losses: [Apr 24 04:06 AM] Corn futures on Wednesday were climbing amid conjecture that planting delays in the U.S. would ensue because of inclement weather, according to Bloomberg. Read more
- Soybean futures push to seven-day high: [Feb 20 06:17 AM] Indications about surging demand from China pushed soybean futures to their highest price in more than seven days on Wednesday, according to Bloomberg. Read more
- Soybean futures climb as demand set to spike: [Feb 19 07:32 AM] Indications of the prospect of surging demand from China pushed up soybean futures on Tuesday, according to Bloomberg. Read more
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Soybean Market Commentary, Analysis and Trade Recs
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