How to invest in soya beans
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.
By carefully analysing the energy market as it is at present, that is to say the oil market, it can be seen that bio fuels represent an alternative that is becoming more frequently studied by specialists to satisfy the growing demand faced at present with a limited and unstable production.
The markets dealing with soya trading are the Japanese Stock markets such as the Tokyo Grain Exchange and the Kansai Commodity as well as the CBOT market (Chicago Board of Trade). They exchange around 20 million contracts per year and around 6 million options.
Although the soya prices experienced a drop on their original price in 2008, passing from 1,650 to 800 cents per bushel, since 2009 the price has been in a steady rising trend and is now generally above 1,000 cents per bushel. The same is true for the price of soya oil that has not stopped rising for some years now.
During this time of world economic crisis, we can easily understand why it can be so profitable to trade in soya. This is the reason why many brokers now offer their clients trading access from their online trading platforms to various agricultural commodities including soya.
The soya prices can therefore often e found next to the Forex currency pairs and other commodities such as oil, gold and silver. The online methods of trading for soya are actually very similar to those for trading in commodities and metals.
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.
Speculate easily on soya beans online:
Effective trading of soya beans online does not require any particular knowledge and is accessible to anyone from a Forex trading platform. Wait no longer to learn more about investing in this particular commodity by registering with a reputable broker online.