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Soybean Oil Trading
Soybean Oil Market Defined and ExplainedEach bushel of soybeans produces about 11 pounds of soybean oil and about 48 pounds of soybean meal so the soybean oil market is often closely tied with developments in the soybean market when external factors come into play.
It has been estimated that about one-fourth of the worlds supply of edible oil comes from soybeans so soybeans have plenty of competition from other sources. Soybean oil is used to make many diverse products such as salad and cooking oils, shortenings and margarines. Soy oil is also an increasingly important ingredient for industrial products such as paints, plastics, lubricants and biofuels.
Soybean Oil InvestingThe practice of trading soybean oil is important to the food and fuel industries as soybean oil futures and options provide the foundation to stabilize often volatile soybean oil prices. Price stability is essential for those businesses that rely on soybeans for their manufacturing processes. Global soybean oil supplies fluctuate constantly due to spring planting decisions and crop progress reports, as well as variations in rainfall and temperature over the growing season. In addition, soybean oil demand never ceases to change. As a result, prices can vary substantially from day to day, and soybean traders should take note of the market volatility and impacts from intermarket factors. Investing in soybean oil appears to have merit as the need continues to grow for readily biodegradable lubricants that are low in toxicity for environmentally sensitive areas. The superior qualities of soy oil have been recognized in Europe and by the U.S. government, and developing new commercial uses for soybean oil is a research priority of the United Soybean Board (USB) and the American Soybean Association.
Using soybeans as a fuel product has gained momentum because high fuel prices have made it economically feasible to use renewable agricultural products in green fuels such as ethanol made from corn and sugar and biodiesel fuels made from soybean oil. These fuels have the potential to lessen greatly U.S. dependence on foreign oil. Biodiesel fuel made from soybean oil is being used more and more as an alternative to pure petroleum-based diesel fuel. Biodiesel decomposes as quickly as sugar and is 10 times less toxic than salt. Soybean oil offers many uses and makes it one of the most versatile agricultural commodities for potential
soybean oil traders. Soybean Oil Prices & Rates
See how VantagePoint Software can predict the soybean oil futures market with up to 86% accuracy* - Get Free Soybean Oil Market Predictions now. Soybean Oil Trading InformationCorn and soybeans are planted in the spring in the United States. Soybean field preparation and planting typically lasts from mid-March through the end of June if soybeans are doublecropped after the winter wheat crop is harvested in southern areas, but the primary planting period in the Midwest where most of the soybeans are grown is during May. Like corn, soybeans are vulnerable to hot, dry weather during the summer growing season. The most critical month for determining soybean yields and the size of the U.S. soybean crop is usually August when blossoming and pod-filling occurs and the quality and amount of soybean oil per bushel of soybeans is determined. A freeze before the soybean plant fully matures in September can be devastating for soybean oil quality. Most of the soybean crop is typically harvested in September-October, and soybean oil prices tend to trend up after harvest as the rate of usage trends up. Soybean Oil Information ResourcesSoybean oil has more sources of information available than many other agricultural commodities. In addition to all of the U.S. Department of Agriculture reports on soybean acreage, production, stocks, crop progress, etc., the U.S. Census Bureau also releases a monthly report on the size of the U.S. soybean crush and statistics about the amount of soybean oil and other edible oils in storage. The National Oilseed Processors Association (NOPA), organized as the National Soybean Processors Association (NSPA) in 1929 and renamed in 1989, also releases a widely followed report estimating monthly crush statistics. Another publication that has been prominent for many years in the global edible oils market is Oil World, sometimes called the Bible of the industry. Soybean Oil Trading StrategySoybean Oil Trading TipSoybean Oil HistoryBreaking News
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* VantagePoint's accuracy statistics were computed on out-of-sample price data utilizing neural networks trained on both single market and intermarket data and relate to the Neural Index which indicates whether the average of tomorrows typical price and the typical price of the day after tomorrow (both unknowns at this time) are expected to be higher or lower than the average of yesterday's typical price and the typical price of the day before yesterday. The numerical value of the Neural Index, either a one (1) or a zero (0) thereby indicates whether or not the trend direction is expected to be higher or lower for each target market over the next two days. A Neural Network accuracy statistic of 80% does not mean that eight out of ten trades will be winning trades. VantagePoint is not a trading system that gives the same specific buy and sell signals to all users. It is a technical forecasting tool that is comprised of proprietary forecasting indicators that apply neural networks to market data for the purpose of finding patterns and relationships between markets and then using this information to make futuristic forecasts. Using these indicators each trader determines his or her own entries, exits and stop placements which may vary from those of other traders due to differences among traders in trading style, objectives, risk propensity, account size and number of contracts involved, thereby producing different trading results from one trader to another. Futures and options trading involves risk, is not for every trader, and only risk capital should be used. For more detailed information, please read our Important Disclaimer, Privacy Policy, and Software License Agreement. |
