Soybeans (ZS)

The versatile bean powering global protein. Soybeans feed livestock, produce cooking oil, and drive biofuel demand.

2-Minute Beginner Summary

Soybeans are crushed to produce soybean meal (animal feed) and soybean oil (cooking, biodiesel). China imports 60% of global soybean trade to feed its massive hog herd. The U.S. and Brazil are the largest producers. Weather in both hemispheres affects prices year-round.

What Is Soybeans?

Soybeans are legumes high in protein and oil. When crushed, they yield meal (80%) for animal feed and oil (20%) for food and fuel.

Why ZS Matters

Soybeans are the world's most traded agricultural commodity. They're essential for meat production and increasingly for renewable diesel.

What Moves the Price?

Top 6 drivers affecting Soybeans prices:

China Demand

China buys 60%+ of traded soybeans. Hog herd size and crush rates are critical.

Weather

U.S. summer and Brazilian summer (Dec-Feb) both affect global supply.

USDA Reports

Monthly supply/demand estimates move markets significantly.

Soybean Oil/Biofuel Demand

Renewable diesel is driving oil demand, affecting crush economics.

Brazilian Real

A weak real makes Brazilian beans cheaper, increasing competition.

Corn/Soy Ratio

Farmers choose between crops based on relative profitability.

Market Structure

Spot vs Futures

CBOT is the global benchmark. Brazil's Paranaguá port is the physical price reference for South American beans.

Contango & Backwardation

Complex structure reflecting both U.S. and South American harvest cycles.

Key Exchanges: CBOT (CME Group), Dalian Commodity Exchange

Contract Size: 5,000 bushels per contract

Seasonality

Two harvests globally create unique patterns.

Peak Months: February, March, June, July

Low Months: October, November, December

U.S. harvest (Sept-Nov) and Brazilian harvest (Feb-May) create low points. Weather scares during growing seasons cause rallies.

Macro Sensitivity

Soybeans are highly dollar-sensitive and tied to Chinese demand. Trade policy matters more than business cycles.

USD Sensitivity: negative
Inflation Sensitivity: positive
Growth Sensitivity: neutral
Rates Sensitivity: neutral

Stock & ETF Exposure Map

Related Stocks

Related ETFs

Key Calendar & Reports

USDA WASDE Report (Monthly)

Source: USDA. World supply and demand estimates

USDA Export Sales (Weekly (Thursday))

Source: USDA. U.S. export sales to China and others

China Crush Data (Weekly)

Source: Various. Chinese soybean crush rates

CONAB Brazil Report (Monthly)

Source: CONAB. Brazilian production estimates

How to Trade Soybeans

ETFs like SOYB offer exposure. Agribusiness stocks (ADM, BG) provide indirect access. CBOT futures are the benchmark.

Frequently Asked Questions

Why is China so important for soybeans?

China's massive hog herd requires protein meal. They buy 60%+ of globally traded soybeans.

What is the crush spread?

The value of soybean products (meal + oil) minus soybean cost. It determines processor profitability.

How do U.S.-China relations affect soybeans?

Trade tensions (tariffs, sanctions) can shift Chinese buying from U.S. to Brazil, affecting prices.

Why does Brazil matter?

Brazil is the largest soybean producer and exporter, with harvest opposite U.S. timing.

What is renewable diesel?

Diesel fuel made from soybean oil. Growing demand is supporting soybean oil prices.

What is soybean meal used for?

Primarily animal feed for hogs, poultry, and cattle. It's the highest-protein common feed ingredient.

How does African Swine Fever affect soybeans?

ASF decimated China's hog herd in 2019. Rebuilding drove soybean demand higher.

What is the corn/soy ratio?

The price of corn vs soybeans. Farmers plant more of whichever is relatively more profitable.

Glossary

Bushel: Standard unit: 60 pounds for soybeans.
Crush: Processing soybeans into meal and oil.
Crush Spread: Value of meal + oil minus soybean cost.
Meal: High-protein byproduct of crushing, used for animal feed.
Oil: Vegetable oil from soybeans, used for cooking and biodiesel.
CONAB: Brazil's National Supply Company, provides crop estimates.
Safrinha: Brazil's second corn crop, planted after soybeans.
Export Premium: Brazil/U.S. export price difference based on timing and logistics.
Basis: Local price versus futures price.
CIF China: Cost, Insurance, Freight to China - the import price.