About Soybeans
Soybeans are crushed into meal for animal feed and oil for food and biofuels. Brazil and the US dominate exports while China is by far the largest importer, so trade relations matter a lot.
What moves the soybeans price
- Weather in the US and South America (Brazil and Argentina).
- Chinese import demand and trade policy.
- Crush margins: the value of soybean meal and oil versus beans.
- Biofuel policy driving soybean oil demand.
The crush
Most soybeans are crushed into meal, a high-protein animal feed, and oil, used for cooking and increasingly for renewable diesel. The difference between the value of the products and the cost of beans is the crush margin. Strong biofuel demand in recent years has lifted soybean oil's share of the crush value, so energy policy now matters for soybeans more than it used to.
Brazil, the US and China
Brazil is now the largest producer and exporter, harvesting mainly from January to April, while the US harvests in September and October. China is by far the largest importer, so its purchases, trade relations with the US and the size of its pig herd drive export demand. Weather in Brazil and Argentina during their summer growing season is watched as closely as the US crop in July and August.
Contract specifications
| Benchmark future | CBOT Soybeans (ZS), CME Group |
|---|---|
| Contract size | 5,000 bushels |
| Minimum tick | 1/4 cent per bushel = $12.50 per contract |
| Contract months | January, March, May, July, August, September, November |
| Settlement | Physical delivery via shipping certificates |
| Products | Soybean meal (ZM) and soybean oil (ZL) |
Specifications as published by the exchange; they can change, so confirm on the exchange website before trading.
Trading hours
CBOT grains trade on CME Globex Sunday to Friday 7:00 pm to 7:45 am US Central Time, then Monday to Friday 8:30 am to 1:20 pm Central Time.
Contract basics
CBOT Soybeans (ZS) cover 5,000 bushels, quoted in cents per bushel, minimum tick 1/4 cent ($12.50 per contract).
Quote unit
US cents per bushel. Hours and specifications can change; always confirm on the exchange's website, especially around holidays.
Soybeans FAQ
What moves the price of soybeans?
Weather in the US and South America (Brazil and Argentina). Chinese import demand and trade policy. Crush margins: the value of soybean meal and oil versus beans. Biofuel policy driving soybean oil demand.
When does soybeans trade?
CBOT grains trade on CME Globex Sunday to Friday 7:00 pm to 7:45 am US Central Time, then Monday to Friday 8:30 am to 1:20 pm Central Time.
What is the standard soybeans contract?
CBOT Soybeans (ZS) cover 5,000 bushels, quoted in cents per bushel, minimum tick 1/4 cent ($12.50 per contract).
What is the soybean crush spread?
The value of the meal and oil produced from a bushel of soybeans minus the price of the beans; it approximates processors' margins.
Who is the biggest soybean buyer?
China, which imports the majority of globally traded soybeans, mostly for animal feed.