First introduced in Europe in the 1700s, the soybean has become one of the most important beans in the world, securing a place for itself by providing oil and protein around the world. With applications as diversified as vegetable oil, animal feed and foodstuffs, it is no wonder that soybeans have become staples in countries far from its original roots in Eastern Asia.
Soybean is an important global crop and processed soybean is the largest source of protein feed and second largest source of vegetable oil in the world. The majority of the soybean crop is allocated for vegetable oil and as animal feed. While tofu, soy milk and other soy products have been developed for human consumption, a small portion of the crop is actually allocated for foodstuffs.
The bulk of the crop is solvent extracted for vegetable oil and defatted Soy meal which is used for animal feed. The extracted Soy oil is one of the major sources of edible oil in the world. Soy oil remnant after oil extraction is rich source of protein for livestock. In 2009, soybeans represented 53% of world oilseed production.
Fundamentally, weather at all producing centers, domestic and international is the most crucial factor, with the pod bearing period, being the most crucial. Similarly, global supply and demand and releases regular reports, which are widely looked upon by the global market to determine prices. The other major influencing factor is the prices of soy oil and soy meal, which is in-turn dependent on the fundamentals of global edible oil and global animal feed industry. Locally, prices are influenced by currency fluctuations, weather, acreage, pest & diseases, production estimate by industry associations, Government agencies.
Export and Import
The top most exporting countries are America, Brazil, Argentina, China and more.
And the importing countries like Vietnam, Japan, Thailand, Indonesia, UAE, Greece and more.
United States is the major producer of soybean in the World. It accounts for approximately 36% of World soybean production with an annual production of 91.4 million tons in 2009/10, followed by Brazil 67.5 million tons of annual production. Argentina, China and India with 54, 14.5 and 8.75 million tons of production, contribute to 21%, 6% and 3% of World production, respectively in 2009/10.
Why trade soya bean through NDEX:
Contract size: Regular (30,000 kg)
Low transaction cost: Fixed spread of NPR 0.03 per 1 KG
Generous leverage: On all products that are clearly detailed on the trade.
Initial margin: Rs.45000 (Regular)
Hedging capability: Can take long or short position from same account
Months: Feb, Apr, Jun, Jul, Aug, Oct
Season: Early Spring
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The soybean's price increases have a negative impact on other grains. As a substitute good, it pushes corn and wheat aside, adversely affecting their supply and demand chains, which in turn significantly affects our global grain system. Global supplies are interdependent among countries, making all grains negatively interdependent because of the fight for limited resources. All of this leads to extreme fluctuations in the price and volatility of soybeans - the perfect environment in which to trade.