In the example above, the product is the July 2018 soybean future (ZS is the symbol for soybeans, N is the symbol for July and the 8 indicates the year 2018).
CHICAGO BEAN TRADE CODE
As for the contract months, the CME assigns a code to each month. Reading Month CodesĮach tick is equivalent to $6.25, so each one cent move in soybean prices equates to $50 per contract. Soybeans and other grains trade in cents per bushel, and the minimum tick (trading increment) is $0.00125 (one-eighth of a cent) per contract. In the case of soybeans, the contract symbol is ZS and the contract size is 5,000 bushels. The relevant pieces of information for each commodity are its symbol, contract size, minimum tick (trading increment), the dollar value of each tick and the contract months. The CME posts the specifications for each product traded on its exchange. To understand pricing for soybean and other grain futures markets, you should begin by examining the contract information at the Chicago Mercantile Exchange (CME), which operates the leading marketplace for the commodity. January (F), March (H), May (K), July (N), August (Q), September (U), October (V) & December (Z)
CHICAGO BEAN TRADE PLUS
Monthly contracts listed for 3 consecutive months and 9 months of January, March, May, July, August, September and November plus next available November. We assembled this comparison of the three futures contracts:ġ/8 of one cent per bushel ($6.25 per contract)ġ0 cents per short ton ($10.00 per contract)ġ/100 of a cent ($0.0001) per pound ($6.00 per contract)
Each of these products has unique specifications associated with it. The CME offers trading on soybeans, soybean meal and soybean oil. What Are the Different Types of Soybean Futures Contracts? Trading in futures requires a high level of sophistication since factors such as storage costs and interest rates affect pricing. At expiration, traders must either accept physical delivery of soybeans or roll their positions forward to the next trading month. If prices decline, traders must deposit additional margin in order to maintain their positions. The CME contract trades globally on the CME Globex electronic trading platform and has expiration months of January, March, May, July, August, September, and November.įutures are a derivative instrument that allow traders to make leveraged bets on commodity prices. The soybean contract settles into 5,000 bushels, or 136 metric tons, of soybeans. The Chicago Mercantile Exchange (CME) trades a soybean futures contract. The soya bean has only been known on other continents since the 17th and 18th century, however.Soybean traders have several ways to trade in the commodity including futures, options, ETFs, shares of soybean companies, and CFDs. Soya beans have been cultivated in China for around 5,000 years. Tofu is used as a meat substitute in vegetarian cookery because of its high protein content and because it contains all the essential amino acids. Soya milk can be produced from ground yellow soya beans, and then can be processed into tofu. Particularly in Asia, the protein-rich seeds are regarded as a foodstuff in their own right and are consumed. It is estimated that around 30,000 foods contain ingredients derived from soya. Soya is also used as an ingredient and additive in the food industry. Soya is particularly significant because of its protein content (39 per cent) and its oil content (17 per cent), since no other plant offers comparable values. The largest share is used to produce animal feedingstuffs, while oil is only obtained from 3 million tonnes. Around 16 million tonnes of soya beans are imported into the EU each year, where they are processed by oil pressers. For this reason soya is cultivated primarily in the USA, Brazil and Argentina. To grow and flourish, the soya bean plants need a lot of water and a warm climate.
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