How to invest in soya beans

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Soya is a particularly attractive agricultural commodity for online traders as well as those who hold bank placement products. But how can you best anticipate the movements in the price of this legume that is so highly consumed worldwide? To learn how to do so read our comprehensive presentation here with details on all information relating to its price and its use as a stock market asset.


General presentation of soya:

Soy is produced in the form of ‘cakes’. Its use relates to both the agro-foods and animal feed sectors. Soya is in fact one of the main bovine feed products and its price is therefore directly correlated to the international demand for meat. It is soya’s protein rich composition that makes it such a prized agro-food product, even with the dietary industry.

Soya oil is also the most produced vegetable oil throughout the world representing 32% of all vegetable oils produced and its production alone consumes 20% of the raw soya production. It is this oil, from soya, that is most used in human alimentation. But soya also enters into the composition of other derived products such as soaps, detergents and even some paints. As with wheat, it is also used in the manufacture of bio-fuels, a sector that is currently in full expansion due to the heady rise of the oil price.

Concerning the global production of soya, the major producing countries are the United States at 40% of the worldwide production, followed by Argentina, China and Brazil. It should also be noted that China is also the largest global consuming country and accounts for nearly 50% of the importation of soya beans worldwide.


A pertinent analysis of the price of soya in real time:

Your trading strategy for soya should above all be based on a good technical analysis of its price. To do this you will find the precise and versatile charts available from the online market brokers trading platforms of great assistance. These are supplied with various analytical tools.

By carefully choosing the type of charts and time periods covered, notably using indicators such as the support and resistance levels, you will be able to complete a good analysis of the soya price in real time and thereby be able to predict its future rising and falling trends.


Quotations of the price of soya in real time:

Soya is traded on a number of different stock markets and exchanges. The major stock market is the CBOT, or Chicago Board of Trade, which forms part of the CME or Chicago Mercantile Exchange. Here it is possible to physically trade in soya as well as on futures contracts and options on soya beans, soybean meal and soya oil. Each year nearly 26 million contracts are traded here on soya beans and no less than 8 million contracts on soya oil.

In Japan, the Tokyo Grain Exchange and the Kansai Commodity Exchange also enable trading in soya.


Historical analysis of the price of soya in real time:

The historical charts of the soya price reveal above all a weak volatility over the short term for this stock market asset. However, over the long term we can note particularly distinct trends.

For example, after a rising trend from 2010 to September 2011 the price of soya then entered a falling trend which can still be noted today. This commodity however still remains beneficial for trading over the long term.


Fundamental analysis of soya in real time:

Apart from this technical analysis that will reveal to you the strong probabilities of the forthcoming price movements you should also take into account the fundamental data, particularly that relating to soya production and global demand.

By comparing the data thereby recovered you will be in a position to implement a fixed strategy based on a solid analysis of all the factors influencing this market.


The indicators to follow for trading in soya beans:

To trade in soya beans you will need to take into account numerous indicators that influence the prices due to their impact on its supply and demand. Therefore you should pay particular attention to the following factors:

  • The climatic conditions and any natural catastrophes that affect the producing countries will of course have a direct influence on the price of soya beans.
  • The consumption, particularly that of China who is the largest soya consumer country worldwide, should be carefully monitored.
  • The demand and consumption of meat is also a recommended indicator as soya is one of the major bovine food components.

How to invest in the price of soya in real time?

To invest in the price of soya in real time it is recommended you use CFDs, otherwise known as ‘Contracts for the Difference’. You can access these contracts by registering with a reputable and secure online Forex broker such as the one we recommend.