Soybeans Meal (Expiring Future)

Soybeans Meal is a traded commodity that is a food source primarily for livestock, supplying high amino acids and a good level of protein. To produce Soybeans Meal, the beans must be cracked, heated, and flaked, and then solvents such as hexane are used to reduce the oil content. What is left over from this process is Soybeans Meal. Soybeans themselves were originally grown in China, and countries in East Asia were the foremost traders. China was producing around 70% of the world’s soybeans. Since the 1900s, soybeans have been exported across the globe and it has since become most widely grown in Brazil and Argentina. Several things can influence the price of Soybeans Meal, but more than most it is the supply and demand of it. The climate can massively affect the growth of soybeans. Furthermore, tax changes can alter the demand – a higher tax will mean less interest in purchase, and a decrease in demand. Like all things, a higher supply will mean less cost, and a higher demand will mean increased cost. This asset is traded as a futures contract. Keep track of price movements of SoyMeal by adding it to your eToro virtual portfolio.