Page 36 - MEX-Yearbook-2017
P. 36
Commodity Insights
Soybean
Introduction humans, where they are seen as a low-cost food additive. Several large
Soybeans as a commodity have a number of special features. Firstly, food companies rely on soybeans for animal feed, including pig farmers,
soybean trading is booming as the world market for soybeans is huge. In chicken farmers and even fish farmers, who use a fish food composed of
America, livestock such as cattle and pigs consume over 25 million tons corn and soybeans. Soybeans are also used in the manufacture of biodiesel,
of soybean meal, which is produced from soybeans, per year. Soybeans which has accounted for a large price increase in soybeans options in the
are also regarded as one of the best commodities to deal with for those last few years.
serious about trading. The high levels of interest and demand coupled with Soybeans were first produced and cultivated in China, but nowadays
high liquidity leave a lot of room for either great loss or great gain on the the United States accounts for the largest global percentage of soybean
commodity market. Soybeans also have derivative components that can be production at around 32%. There are 31 states in America that grow
traded at the exchanges, such as soybean oil, so as a commodity soybeans soybeans, with the top three being Iowa, Illinois and Indiana. Another
possess a great deal of flexibility when trading futures contracts. main area of production is Brazil, where soybeans are on an equal footing
The two main markets for soybeans are the food market and the fuel market. with coffee and sugar as one of the main exports of the country.
Soybeans are used as foodstuff all over the world for both livestock and
35 | MEX NEPAL YEAR BOOK 2017
