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Trading financial products on margin carries a high degree of risk and is not suitable for all investors. Please ensure you fully understand the risks and take appropriate care to manage your risk.

Trading financial products on margin carries a high degree of risk and is not suitable for all investors. Please ensure you fully understand the risks and take appropriate care to manage your risk.

Your capital is at risk.

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Skilling Ltd, is regulated by the Cyprus Securities and Exchange Commission (CySEC) under CIF license No. 357/18

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Skilling (Seychelles) Ltd, is authorized and regulated by the Financial Services Authority (FSA) under license No. SD042

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Trade [[data.name]]

Trade the most popular, headline-grabbing commodities with Skilling!

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[[ data.price ]] [[ data.change ]] ([[ data.changePercent ]]%)

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About

History

Differences between Investing vs Trading

About

History

Differences between Investing vs Trading

Soybeans are a staple soft commodity. They have long been an excellent protein source. Soybean cultivation has been in existence throughout East Asia for more than five millennia, but it wasn’t until the 1900s that soybeans were successfully exported to the western world. Soybeans are grown in a similar environment to other soft commodities such as corn. Consequently, farmers can rarely harvest soybeans and corn simultaneously and need to focus on one or the other throughout the course of a planting season.

Almost three-quarters of all soybeans produced are not consumed by humans. In fact, they are used as livestock feed. There are many other uses of soybeans, including the extraction of soybean oil for cooking oil. A tiny fraction of soybean production is also used to generate biofuel, while it’s also used in the creation of eco-conscious, non-toxic product alternatives such as soy-based crayons. The global soybean marketplace is forecast to be worth $215.7 billion by 2025, according to Transparency Market Research.

As with most other soft commodities, the soybean price today is largely driven by the market forces of supply and demand. However, there are multiple drivers of the supply and demand of soybeans.

America is one of the biggest exporters of soybeans today. Adverse weather conditions in rural USA can have a lasting effect on soybean yields, resulting in demand outstripping supply. Soybean producers will also receive smaller profits when the US dollar is strong and greater profits when it is weak, given that soybean prices are quoted in USD. Soybean is also in increasing competition with other alternative oil producers, including cottonseed, rapeseed and linseed. If demand weakens for these competitor products, it could strengthen the soybean market.

The strength of the US dollar against many other fiat currencies during the current cost-of-living crisis has seen soybean prices reach over $1,500. In fact, since the onset of Covid-19, the price of soybean has risen from a relatively stable price of $813 and has not traded lower than $1,097 since the pandemic began.

With significant price volatility a key feature in the soybean market, many soft commodities traders look to take short-term positions. They will buy and sell the price of soybean quickly to take advantage of brief fluctuations in the market – a trading technique known as scalping.

Investors in soybean for the medium-to-long term may do so if they believe the US dollar will remain strong against other leading fiat currencies. However, the uncertainty surrounding geopolitics and climate conditions makes this a risky ploy. Futures and options contracts are an alternative. Futures give you the ability to set a future date to buy soybean for a pre-agreed price. Options allow you to speculate on the price of soybeans without owning the underlying asset. Put and call options give you the right but not the obligation to trade the price of soybean prior to the expiry of the contract.

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Swap short [[ data.swapShort ]] points
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Commission and Swap Commission and Swap
Leverage Leverage
Trading Hours Trading Hours

* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.

The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.

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Trade [[data.name]] with Skilling

Take a view on the commodity sector! Diversify with a single position.

  • Trade 24/5
  • Tight spreads
  • Average Execution at 5ms
  • Easy to use platform
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Why Trade [[data.name]]

Make the most of price fluctuations - no matter what direction the price swings and without the restrictions that come with owning the underlying asset.

CFD
Actual Commodities
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Capitalise on rising prices (go long)

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Capitalise on falling prices (go short)

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Trade with leverage

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Trade on volatility

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No commissions
Just low spreads

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Manage risk with in-platform tools
Ability to set take profit and stop loss levels

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