Best Soybeans Trading Brokers May 2025

The world's most important oil-producing plant is said to be soybeans. Soybean oil is used in salads, fried foods, baked goods and margarine. It is used in the manufacture of lubricants, paints and soaps in industry. However, it is most often used in animal feed to fatten animals.

It is estimated that 80% of soybean production is used for animal feed. According to the WWF, it takes about 1 kilo of soy to produce 0.5 kg of pork.

Traders are becoming increasingly familiar with and interested in the commodities market, especially commodities such as soybeans. There are several investment opportunities due to the unpredictability of the soybean market.

It is difficult to consider investing in a tangible asset like soybeans, as one can do with commodities like gold, silver or currencies. Compared to the physical space occupied by these assets and the problem of shelf life, the price of soybeans is too low. However, we have access to financial products such as soybean futures, ETFs and CFDs.

The Chicago Board of Trade (CBOT), founded in 1848, is the oldest and best-known commodity market where soybean sales contracts were traded. Since 2007, the Chicago Mercantile Exchange (CME) CME Group and the CBOT are associated.

The other exchanges with quotations for soybean futures contracts are:

• SAFEX
• DCSKEX
• RGE
• KCX
• NCDEX
• ROFEX

Due to their complexity and the high risk of losing money quickly, CFDs are leveraged financial products. In ordinary investor accounts, financial losses from CFD trading range from 72% to 89%. Make sure you can handle the high risk of losing your money and that you are aware of how CFDs work and do not forget to choose the best broker to trade soybeans. Plus500, for example, offers you one of the lowest trading fees in the market and more than 2000 other assets to trade.

We can use ETFs to invest in various long-term soybean contracts. But in this case, it seems to be a less attractive alternative given the limited number of ETFs available in this sector and the high operating costs. In fact, the Teucrium Soybean Fund, often known as SOYB, is the only ETF in this sector.

The price of soybeans as an agricultural commodity is influenced by a number of variables. Weather conditions impact the annual production of most agricultural crops. A reduction in supply caused by adverse weather conditions prior to a harvest will increase the price of soybeans. Soybean rust, a fungal disease that has recently reduced crop productivity, is another agricultural problem.

The United States, Brazil, Argentina, China and India are the major producers of soybeans. These countries account for 90% of world production. With a production of 108 million tons, the United States is considered the largest producer, followed by Brazil with 86.8 million. Argentina comes third with 53.4 million. China, which imports more than 41% of all goods, and Europe, which imports 22% of all goods, are the two largest importers.

The majority of soybean use, 75% of total consumption, is for animal feed due to population growth, economic changes, and the overall increase in demand for soybeans. However, the most important economic interest lies in the oil and protein produced from soybeans.

The composition changes depending on the region, climate and agricultural practices used to produce the product. Asia now consumes the most soy products due to the substitution of soy for meat and milk in the form of tofu and soy milk.

Due to the high volatility of this commodity, traders are advised to keep an eye on weather and other outside variables that, depending on the country, will directly affect agricultural production. Although these factors are uncontrollable and secondary, they will affect the price of soybeans. To better understand each market trend, it is advisable to study technical indicators such as moving averages. Demand is often influenced by the lack of alternatives or other crops. For example, if the price of meat is falling, there may be less need for soybean products. Similarly, if there is more grain available to feed livestock, the need for soy products may be less.

Investors often divide commodities into two categories. First, there are "raw materials," which are metals or energy sources that must be mined or extracted from natural resources. Iron ore, crude oil and precious metals fall into this category. The shelf life of these commodities is often quite long. The second category, called " primary products," consists mainly of agricultural products such as wheat, corn, coffee, and cotton, as well as animals such as lean hogs and live calves. In general, commodities are seasonal and can deteriorate rapidly.

Grouping commodities into four categories is another popular method of classification:

• Agricultural commodities such as cocoa, sugar, cotton, and coffee.
• Oil-based energy sources such as gas and oil
• Metals include base metals, such as copper and iron, as well as precious metals such as gold, silver and platinum.
• Animals, including live cattle, animals in general, and meat products.

Many different commodities have been traded so far, but investors, especially newcomers, need to focus on the most liquid markets, as this has an impact on how easy it is to initiate and conclude trades. In other words, liquidity measures the number of parties willing to buy and sell a certain commodity, as well as the ease with which trades can be executed.

According to Futures Industry Association (FIA) statistics, the following commodities are the most frequently traded:

• Crude Oil
• Brent oil and gas
• Soybeans
• Corn
• Copper
• Silver

As an agricultural commodity, the price of soybeans is heavily influenced by weather conditions, especially during the growing season. As more and more European and American customers switch to a plant-based diet, we have also seen a significant increase in demand. Soybeans are a fantastic source of plant-based protein, but this could have a long-term effect on its cost. Farmers often trade their fields based on the price of each field. So soybeans are influenced by the supply and demand of corn. Farmers may plant more soybeans if prices are high in order to maximize their gains, but strangely, this can lead to lower soybean prices later in the season when supply increases sharply.

Soybeans are considered a reliable insurance policy against a declining currency and rising inflation. Focusing on soybean trading can be a diversification and revenue generating strategy as both are expected in the coming months and years in response to large U.S. deficits. In addition, an increase in demand for soybeans is expected due to an expanding global population and increased interest in plant-based diets. Demand for soybeans will increase due to the growing transition to green energy and the use of soybeans in the manufacture of biodiesel.

Online traders profit from the spreads between soybeans and its two main products, soybean oil and soybean meal, when soybeans are traded in the form of futures or options. Trading CFDs is the best tactic for making an immediate financial profit from soybean price fluctuations. CFDs are much more profitable than futures contracts because they are a direct speculation on the price of soybeans. If a trader believes that the price of soybeans will rise or fall, he can simply take a long or short position using CFDs. It is also important to note that the loss of capital might incur so you should be aware of the risks involved.