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Soybean Exchanges

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Category: Commodity

 

Understanding Soybean Contracts

Like each commodity, soybeans have their very own ticker symbol, contract worth and margin requirements. To successfully trade a commodity, you will need to be aware of these key parts and understand easy methods to use them to calculate your potential earnings and loss.

 

Commodities are traded based mostly on margin, and the margin changes primarily based on market volatility and the current face value of the contract. To trade a soybean contract on CBOT requires a margin of $four,725, which is approximately 7% of the facevalue.

 

 

Soybean Exchanges

Soybeans are traded in an open outcry format and electronically through the CME Group (Chicago Mercantile Change (CME), e-CBOT), the Brazilian Mercantile and Futures Change (BM&F), Mercado a Termino de Buenos Aires (MATba), Dalian Commodity Change (DCE), Kansai Commodities Trade (KANEX), National Commodity and Derivatives Trade (NCDEX) and the Tokyo Grain Change (TGE).

 

Facts About Production

Nearly all of the soybean crop is allotted for vegetable oil and as animal feed. Whereas tofu, soy milk and different soy products have been developed for human consumption, a small portion of the crop is definitely allocated for foodstuffs.

 

In 2008, U.S. farmers set aside 74.8 million acres for soybean plantings. In 2007, only 63.6 million acres (25.7 million hectares) were set aside for soybeans. The yield from that crop produced 2.585 billion bushels (70.36 million metric tons) of soybeans, and almost half of it, or 1.zero billion bushels (27.9 million metric tons) was exported.

 

Satirically, China is the biggest importer of U.S. soybeans, with Mexico coming in at a distant second. Contemplating soybean byproducts, which are soybean meal and soybean oil, Mexico bought $439 million worth of soybean meal and China bought $one hundredsixty million value of soybean oil.

 
U.S. Government Required Disclaimer - Commodity Futures Trading Commission

Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. All trades, patterns, charts, systems, etc., discussed in this advertisement and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher or Tradewins.