Soybean oil futures are traded in 60,000-pound contracts and are priced in cents per pound. When you see a price of 38.20, it refers to $0.3820 per pound, or 38.20 cents. A tenth of a cent price increase is represented by a positive daily change of.10.
What is the price of soybean futures?
Soybean futures contracts are purchased and traded in increments of 5,000 bushels. As a result, the contract’s total dollar value equals the price per bushel multiplied by 5,000. The CME also offers a minisoybean futures contract that is 1/5th the size of a regular contract for smaller dealers. 1,000 bushels of soybeans are included in a small contract.
How do you interpret futures market prices?
- Change: The difference between the current trading session’s closing price and the previous trading session’s closing price. This is frequently expressed as a monetary value (the price) as well as a percentage value.
- 52-Week High/Low: The contract’s highest and lowest prices in the last 52 weeks.
- Each futures contract has a unique name/code that describes what it is and when it will expire. Because there are several contracts traded throughout the year, all of which are set to expire, this is the case.
Soybean futures are measured in what unit?
5,000 bushels of soybeans will be the trading unit. Soybean futures will have a minimum variation of 1/4 cent per bushel ($12.50 per contract), including spreads. Every six months, the daily price restrictions for soybean futures are reset.
What method do you use to interpret futures symbols?
Futures tickers are slightly different from stock tickers. Each futures market has its own ticker symbol, which is followed by the contract month and year symbols. Crude oil futures, for example, carry the ticker symbol CL. CLZ7 is the full ticker sign for December 2017 Crude Oil Futures. The ticker symbol for gold is (GC), and the whole ticker symbol for June 2017 gold is GCM7.
The “CL” stands for the underlying futures contract in the case of oil. The letter “Z” denotes a December delivery month. (F=January, G=February, H=March, I=April, K=May, M=June, N=July, Q=August, U=September, V=October, X=November, Z=December) The number “7” represents the year – 2017.
For futures ticker symbols, this is the conventional formula. Some quote services may vary slightly, so double-check with your source, who will give you a list of ticker symbols for all futures markets.
How many bushels of soybeans per acre can you get?
WASHINGTON, D.C., 12 JANUARY 2022 According to the 2021 Crop Production Annual Summary released today by the United States Department of Agriculture’s National Agricultural Statistics Service, more area and greater yields for corn and soybeans resulted in record high soybean production and near-record high corn production (NASS).
Corn growers in the United States produced 15.1 billion bushels, up 7% from 2020 and the second largest on record. Corn yields in the US are expected to reach a new high of 177.0 bushels per acre, up 5.6 bushels from the 2020 output of 171.4 bushels per acre. The total area harvested for grain is up 4% from 2020, to 85.4 million acres.
Soybean production reached a new high of 4.44 billion bushels in 2021, up 5% from 2020. The average soybean output is anticipated to be 51.4 bushels per acre, 0.4 bushel higher than 2020 and the second highest on record, thanks to record high yields in 21 states.
Cotton production is expected to increase by 21% in 2021, to 17.6 million 480-pound bales, compared to 2020. The production in the United States is expected to be 849 pounds per acre, up 2 pounds from previous year. The harvested area is up 20% from last year, at 9.97 million acres.
The Winter Wheat and Canola Seedings and Grain Stocks data were also released today. The Winter Wheat and Canola Seedings report is the first indication of winter wheat acreage for this year. In 2022, the planted area for harvest is expected to be 34.4 million acres, up 2% from 2021.
Corn stockpiled as of Dec. 1, 2021, was anticipated to be up 3% from Dec. 1, 2020, according to the Grain Stocks report. Stocks of soybeans were up 7% from a year ago. Corn totaled 11.6 billion bushels in all positions, while soybeans totaled 3.15 billion bushels. All wheat stocks were 18 percent lower than a year ago. On December 1, 2021, the total amount of wheat stockpiled in all positions was 1.39 billion bushels.
What is the best way to read grain futures?
The most recent or most recent trade price. In this situation, 614.6 = $6.146 per bushel futures price in US Dollars
Total open option contracts that have been traded but not liquidated with offsetting trades are referred to as open interest.
The component of the cash price that is influenced by local supply and demand is known as the basis. Each grain terminal has its own set of basis levels, which might be negative or positive. When reading the basis section of grain prices, it’s crucial to know if the price is in Canadian dollars, the delivery time, and the unit of measurement (bushels or metric tonnes).
In comparison to the futures market, a high basis suggested a high local cash price. It’s a sign of high demand or low supply in the area.
Weakening base indicates that local supply is relatively large in comparison to overall supply.
Premiums and reductions will be tailored to both the buyer and the grain you deliver. Premiums and discounts are frequent in the grain industry, depending on market conditions, grain grade, and what a grain company is seeking for. When negotiating a contract, inquire about the premium and discount levels. Having grain samples assessed in several locations is a useful approach to figure out what quality the grain is and can aid in making quality-based marketing decisions.
Other things to have top of mind when reading grain prices
It’s crucial to understand the currency in which the price is quoted and how the grain firm manages foreign exchange. Grain companies can adjust for foreign exchange in the futures market or on a basis basis.
What’s the difference between the S&P 500 and its futures?
Index futures track the prices of stocks in the underlying index, similar to how futures contracts track the price of the underlying asset. In other words, the S&P 500 index measures the stock prices of the 500 largest corporations in the United States.
Do futures market open predictions work?
Investors who want to sell that day should wait until after the market opens if S&P 500 Index futures move higher outside of market hours and imply the stock market will increase on the opening (or set a higher price limit). When index futures indicate a lower opening, buyers may want to hold off. However, nothing is assured. The opening market direction is mostly predicted by index futures, yet even the best foretellers are often inaccurate.
What method do you use to price commodity futures?
The following formula can be used to compute commodity futures prices: Add storage costs to the commodity’s current price. Multiply the result by Euler’s number (2.718281828), which is equal to the risk-free interest rate multiplied by the maturity time.