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Soybean Trading
Soybean Trading Defined and ExplainedSoybeans are one of the most popular
oilseed products in the world and have a wide range of uses, from food and
feed to industrial materials. Trading soybeans futures on a
global scale is seen as a profitable endeavor as soybean products are
especially appreciated in Asia and among global natural-food enthusiasts. Many
publications are now printed with soy ink, which is becoming
an increasingly popular alternative to petroleum-based inks. Investing in Soybeans
Investing in soybean options and futures makes sense to many traders as soybeans are increasingly being seen as a renewable resource with many industrial applications as well. Diesel fuel with a soybean foundation is a new energy source that's capturing the attention of the trucking and construction industry. At some point trading in the soy market may take on some features that are similar to energy futures trading. Soybeans are also being used successfully in cleaning products, adhesives, polyesters, and other textiles. Soybean Prices & RatesTwo soybean futures contracts are traded at the Chicago Board of Trade.
There are several other options for trading soybeans:
See how VantagePoint Software can predict the Soybean market with up to 86% accuracy* - Get Free Soybean Trading Predictions now. Soybean Trading TipsWatch how the seasonal pattern develops for soybean futures. Typically, soybean prices come under pressure before and during the U.S. harvest season in September-October when an increase in supply is anticipated or realized. But the winter is also the largest demand period for soybean meal in livestock feed so soybean crushers and soybean exporters begin to bid up prices in late fall or early winter before all of the soybeans get locked up in farm bins. Then after the first of the year soybean and grain prices sometimes endure a February break as the rivers freeze up and barge transportation is limited and as farmers deliver the crop they had been holding for tax or other reasons. In the past the attention then began to focus on new-crop soybeans and the uncertainty about planted acres and summer growing conditions, causing soybean prices to rise into summer as soybean supplies diminished. However, the rise in South American soybean production and exportable soybean supplies in March-April has modified the seasonal pattern. The price structure of soybean futures contracts usually includes a carry charge to cover the cost of interest, insurance, etc. that is, the price of March soybean futures should be, perhaps, 10-12 cents higher than for January soybean futures for that reason alone. But if the prices for front-month soybean futures are above prices for the more distant contract months, the market is saying it wants the soybeans now and is evidence of demand. Traders should be alert to these price influences on soybeans and should be using a technical indicator like moving averages to get a clearer picture of the market trend. Soybean TradingSoybean Trading StrategySoybean Trading NewsSoybean Trading InformationSoybean Trading HistorySoybeans originated in China but over the centuries have been cultivated in many temperate areas around the globe. For many years the United States was the worlds major soybean producer and exporter, but in recent years soybean production has increased dramatically in Brazil and Argentina. Although the United States still exports more than a billion bushels of soybeans in a year, the U.S. share of total world soybean exports has decreased as South American soybean production and trading has expanded. China has been a major soybean producer and exporter in the past, but with its large population and domestic demand, China has become a major soybean importer and its soybean purchases or lack of them have become a significant factor for soybean prices. According to the Smithsonian, Henry Ford even promoted soybeans, helping to develop uses for it in both food and in industrial products, even demonstrating auto body panels made of soy-based plastics. Henry Ford's interests in soybeans led to 2 bushels of soybeans being utilized in each Ford car. Breaking 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. |
