At 5,000 bushels per contract, CBOT soybean futures are traded on the Globex platform from 8:00 p.m. U.S. ET to 2:20 p.m. U.S. ET the next day. To trade soybean futures, you’ll need a futures account that has been approved.
What is the procedure for purchasing soybean oil futures?
Participate in the global soybean oil price discovery process. Identify cyclical pricing and volatility trends for soybean oil over the short and long term. Trade soybean oil to hedge or bet on expected directional price, spread movement, or volatility. There is just one contract denomination that can be traded:
Contract Expiration: To receive access to our web-based trading platform, request a free demo.
You will be able to read entire contract parameters, including First Notice and Last Trading Day, from within the web-based platform.
Margin requirements for open futures holdings are subject to vary and are required.
The CME Globex trading platform offers the soybean oil futures contract for trading.
Open outcry trading takes place from 7:30 a.m. to 11:15 a.m. PT.
Electronic trading is available during open outcry trading and from 4:00 p.m. to 4:00 a.m. p.m. p.m. p.m. p.m. p.m. p.
Trading example: If you buy one contract of ZL at 60.00 and it goes to 60.50 the next day, you will make a $300 profit.
On the other hand, if it dropped to 59.50, you’d lose $300.
Futures contracts
A futures contract is the most frequent way for traders to enter the soybean market. Futures contracts allow traders to agree on the delivery of a specific quantity of soybeans, soybean oil, or soybean meal at a specific price at a future date. With a futures contract, however, a trader may be required to take delivery of the soybeans at some point. This could be a concern unless they have enough storage facilities.
Contracts for difference
CFDs allow you to make predictions on the price movements of soybean markets without having to possess the actual assets. CFDs can be used as a hedge for your other active positions because they allow you to go short or long in order to profit from both market dips and advances.
How can I go about purchasing soybean stock?
Soybeans are one of the most widely grown agricultural crops in the United States. According to the Environmental Protection Agency, about 73 million acres of cropland in the United States were used to harvest 2.8 billion bushels of soybeans in 2000. This is a fantastic investment opportunity. Investors can indirectly participate by owning fertilizer businesses and other agricultural assets, but only three investment vehicles allow direct exposure to soybean prices: futures, futures options, and exchange-traded investments. Each of these investment categories has its own set of characteristics to examine.
Is it wise to invest in soybeans?
If you’re a seasoned investor, you’re probably already aware with the term “exchange-traded fund,” or ETF, but for those of you who aren’t, we thought we’d explain. An ETF is a collection of funds or securities that can include stocks, but it is not the same as actual stocks. When it comes to ETFs, you can invest in a variety of things, including our topic, soybeans. Because they may be traded like stocks, they are referred to as a “exchange traded fund.” This is not the same as investing in mutual funds, which are not traded on a stock exchange. They do, however, have the advantage of diversification, just like mutual funds. Soybean ETFs are exchange-traded funds that invest in soybeans and provide investors with a glimpse into the future of the crop. This ETF does not require a futures exchange account. With this option, the investor is better able to make appropriate investment decisions and so get better returns on their money.
- The asset owner, or ‘fund provider,’ establishes a fund to track asset progress.
- The fund provider sells’shares’ of the fund to anyone interested in investing (the shareholders own the shares, but not the assets)
- In exchange, investors receive ‘lump dividend payments,’ which can be re-invested.
- During the day, buyers and sellers can trade the stock on the exchange for a profit.
Soybean ETFs, in particular, are thought to be a good investment for younger investors for a variety of reasons. For starters, there are modest costs, which is great for individuals who are just getting started. Second, because of the large range of options, they make management simple. They’re also simple to sell, and there are plenty to select from. Soybean ETFs, on the other hand, have some drawbacks. Some of the setbacks that investors may face, and should be aware of and on the lookout for, according to Investopedia, include:
- Pay Attention to Fees While ETFs are normally low-cost investments, you may come across costs that are inflated, and you may be taken for a ride.
- ‘Capital Gains Distribution’ This form of return entails paying a ‘capital gains tax,’ so keep that in mind before investing.
- Unseen Hazards and Fluctuations There will be times when the finer, more significant changes, as well as the risks associated with them, are not immediately apparent…dive before investing!
- Liquidation Difficulties – While most soybean ETFs will be easier to liquidate than others, there may be situations when this is not the case. Before you put your money in, make sure you understand the situation. There are many fine points to investing, therefore the key is to be informed…educate yourself well before investing your money, and you will have less regrets in the long run. So, how should you go about making a fashion investment?
How much do soybeans sell for?
According to Trading Economics global macro models and analysts, soybeans are likely to trade at 1613.81 USd/BU by the end of this quarter. Looking ahead, we expect it to trade at 1808.41 in the next 12 months. The Chicago Board of Trade offers soybean futures for trading (CBOT ).
What method do you use to interpret soybean prices?
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 will happen to soybean prices?
USDA’s prediction of the average soybean price obtained by U.S. farmers in 2021/22 increases to $13.25 per bushel from $13.00 last month due to dwindling hopes for South American crops. USDA also raised its projection for soybean meal season-average price to $420.00 per short ton from $410.00 last month. Soybean oil prices are also robust, and the prediction for this month has been raised by 2.0 cents to 68.0 cents.
This month, global soybean production fell by 10 million metric tons to 353.8 million metric tons for 2021/22. Soybean crop conditions in Southern Brazil have deteriorated, resulting in a lower production projection of 127 million metric tons, down from 134 million last month. Paraguay’s soybean production prediction was also cut from 6.3 million tons to 5.3 million tons. Argentina’s output prediction for 2021/22 was reduced by 1.5 million metric tons due to earlier damage to the first crop of soybeans in February, resulting in a total of 43.5 million. As a result, global commerce and ending stocks have shrunk.
A futures contract contains how many bushels of soybeans?
One futures contract for soybeans, for example, represents 5,000 bushels of soybeans. As a result, the contract’s monetary value is 5,000 times the price per bushel. The contract’s worth is $28,500 ($5.70 x 5,000 bushels) if the market is trading at $5.70 a bushel. The maintenance margin necessary for one contract of soybeans, according to exchange margin standards in effect on Jan. 23, 2022, is roughly $2,650.