Soybean: One of the most Tradable Agri Commodity Swastika
SOYBEAN-ONE OF THE MOST TRADABLE AGRI-COMMODITY

SOYBEAN-ONE OF THE MOST TRADEABLE AGRI-COMMODITY

Soybean (Glycine max) is termed Golden Bean. The plant is classed as associate seed and is a vital international crop. The processed soybean is the largest supply of supermolecule feed and second-largest supply of edible fat within the world. The foremost portion of the worldwide and domestic crop is solvent-extracted with alkane to yield soy oil and procure Soymeal, which is widely employed in the animal feed trade.

Soybean has a very important place in the world’s seed cultivation state of affairs, because of its high productivity, profitability and important contribution towards maintaining soil fertility. The crop additionally features outstanding place as the world’s most vital seed legume, that contributes 25% to the worldwide edible fat production, about 2/3rd of the world’s protein concentrate for livestock feeding and is a valuable ingredient in formulated feeds for poultry and fish.

About 85% of the world’s soybeans are processed annually into soybean meal and oil. Of the oil fraction, 95% is consumed as edible oil; the rest is used for industrial products such as fatty acids, soaps and biodiesel. 

Soybean seed is processed for Soymeal and Soy oil, both of this product are consumed throughout the country. A previously substantial part of Soymeal productions gets exported but from last two years exports reduced and domestic consumption increased.

India produces around 10 Mn tones of Soybean, while global production is around 340Mn tones. Among which the major producing countries are the USA, Brazil and Argentina whereas the major producing states are MP, Maharashtra and Rajasthan.

USES OF SOYBEAN:

  • Processed Soybean is the largest source of protein feed and second-largest source of vegetable oil in the world. Soybean seed is processed for Soymeal and Soy oil, both of this product are consumed throughout the country.
  • Soybean seed is processed for Soymeal and Soy oil, both of these products are consumed throughout the country.
  • There are many other products which are manufactured from Soybean like Soy nutrila, Soy flour, Soy yogurt, Soy sauce, Soy milk, tofu etc
  • Soybean oil is also used for industrial purposes in products like paints, plastics and cleaners and also used as biodiesel fuel for diesel engines that are being produced from the soybean oil by a simple process called transesterification.

FACTORS AFFECTING THE PRICE OF SOYBEAN:

  • Weather condition especially during sowing and pod bearing condition. 
  • Demand for Soybean from Soybean processing industry. 
  • The demand of Soymeal from poultry feed industry. 
  • Government policies: MSP, Import duty, stock limit, import and export duty on its derivatives.
  • Demand-Supply and price scenario of other competitive oils i.e. palm oil. 
  • Price movement of Soybean in international exchange CBOT. 
  • International production of Soybean and also International prices of Soymeal and Soy oil.

SEASONALITY:

SOYBEAN-ONE OF THE MOST TRADABLE AGRI-COMMODITY

BENEFITS OF NCDEX SOYBEAN FUTURES:

  • It acts as a benchmark for the futures contract of soybean.
  • It helps in a robust delivery mechanism.
  • It connects the entire value chain.
  • Hedging and price risk management tool for the value chain.
  • Efficient and transparent price discovery.

CONTRACT SPECIFICATIONS:

  • Ticker symbol – SYBEANIDR
  • Trading Unit – 5 MT
  • Delivery Unit – 5 MT
  •  Maximum Order Size – 500 MT
  • Tick Size – Re.2 (per QUINTAL)
  • Hours of Trading- Mondays through Fridays: 9:00 A.M. to 5:00 P.M.
  • Quantity Variation – +/- 2%
  • Delivery Center – Indore, Akola, Latur (Maharashtra), Mandsaur (MP), Kota (Rajasthan)
  • Delivery Logic – Compulsory Delivery
  • Delivery Specification – Upon expiry of the contracts all the outstanding open positions shall result in compulsory delivery.
  • Due date/ Expiry Date 20th day of the delivery month – If 20th happens to be a holiday, a Saturday or a Sunday, then the expiry date (or due date) shall be the immediately preceding trading day of the Exchange, which is other than a Saturday.

Try Swastika Investmart to manage your wealth profile. Click here to Open Demat account or feel free to Contact Us

 

Leave a Reply

Your email address will not be published. Required fields are marked *