The farmer planted 1,000 acres of soybeans in his Central Illinois farm.Options on Soybean (OZS), Soybean Meal (OZM), and Soybean Oil (OZL) have a contract unit of one1 futures contract and are deliverable by the corresponding futures contract. A total of 27 contracts are listed simultaneously. ZL contracts are listed for eight months covering year-long processing time. Each contract has a notional value of 60,000 pounds, equivalent to 27.2 metric tons. Soybean Oil (ZL) futures are physically delivered contracts. A total of 25 contracts are listed simultaneously. ZM contracts are listed for eight months covering year-long processing time. Each contract has a notional value of 100 short tons, equivalent to 91 metric tons. Soybean Meal (ZM) futures are also physically delivered contracts. Other contract months are soybeans available for sales from the previous crop year, hence the name “Old Crop”. For Ssoybean futures, it is the November contract (ZSX3), which coincides with the harvest season. The former refers to crops that have not been harvested. You may have heard of the terms “New Crop” and “Old Crop”. Soybean futures contracts are listed for seven months covering planting and harvesting seasons, with contracts projecting out three and a half3.5 years in the future. Each contract has a notional value of 5,000 bushels, equivalent to 136 metric tons. Soybean (ZS) futures are physically delivered contracts based on No. Soybean futures began trading at the Chicago Board of Trade in 1932, followed by futures on its byproducts: Soybean Oil in 1946 and Soybean Meal in 1947. Soybean exports have increased dramatically since 2000 as the demand for meat and poultry grew in Europe and Asia, but particularly in China. Bureau of Economic Analysis, soybean exports totaled $6.9 billion in the first two months of 2023, contributing to 1.4% of all U.S. Soybean oil may also be left unprocessed and used in the production of biodiesel fuels.Įxports are big business for U.S. It is further processed into human foods, such as soy grits and flour, and is a key component in meat or dairy substitutes, like soymilk and tofu.Īfter initial processing, soybean oil is further refined and used in cooking oils, margarines, mayonnaise, salad dressings, and industrial chemicals. Soybean meal is used by feed manufacturers as a prime ingredient in high-protein animal feed for poultry and livestock. When a bushel of soybeans weighing 60 pounds is crushed, the typical results are: The term “crush” refers to the physical process of converting soybeans into soybean oil, soybean meal, and other byproducts. harvests 4.3 billion bushels of soybean a year and exports 47% of it.Ībout two-thirds of the total soybean crop is processed, or crushed, into soybean oil and soybean meal. As a major soybean producer and export, the U.S. The United States, Brazil, and Argentina are the largest soybean producers, accounting for 80% of the global production. Let’s visualize this: If we were to distribute the entire crops to the world population, each person on the planet would get approximately 46 kilograms of soybeans. It is the most-traded agricultural commodities, comprising more than 10% of the total value of global agriculture trade.Īccording to the World Agricultural Supply and Demand Estimates (WASDE) report, global soybean production for the 2022/2023 crop year is 369.6 million metric tons. Soybean is the world’s largest source of animal protein feed and the second largest source of vegetable oil.
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