Soybean Prices (SOYBEAN): Live Price Chart

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.