3. characteristics
• Soybean is an important global crop and
processed soybean is the largest source of
protein feed and second largest source of
vegetable oil in the world
• The major portion of the global and domestic
crop is solvent-extracted with hexane to yield
soy oil and obtain soymeal, which is widely used
in the animal feed industry. It is estimated that
above 85% of the output is crushed worldwide
4. • Though, a very small proportion of the crop is
consumed directly by humans, soybean products
appear in a large variety of processed foods.
• The cultivation of soybean is successful in climates
with hot summers, with temperatures between 20°C
to 30°C being optimum. Temperatures below 20°C
and over 40°C are found to retard growth
significantly.
• It can grow in a wide range of soils, with optimum
growth in moist alluvial soils with a good organic
content.
• Modern soybean varieties generally reach a height of
around 1 m (3 ft), and take 80-120 days from sowing
to harvesting.
5. Global Scenario
• The annual global soybean production has been in the range
of 210-230 million tonnes in the recent years, accounting for
55-58% of total global oilseed output of around 390-400
million tonnes
• US, Brazil, Argentina, China and India are the major
producers in order of production with production in these
countries ranging around 70-80, 55-60, 32-48, 14-16 and 8-
10 million tonnes in the recent couple of years
• Weather, acreage under other competitive crops like
corn, cotton and pests & diseases are the major factors
influencing production
• While in US, India and China crop starts arriving from Aug-
Sept, it starts from Jan-Feb in S. America
• The annual global trade in soybean is estimated to be
around 70-80 million tonnes
6. • While, USA (30 -35 million tonnes), Brazil (23-28
million tonnes), Argentina (5-15 million tonnes)
are the exporters of beans, China (35-40 million
tonnes) and EU (12-16 million tonnes) are the
major importers
• In addition to soybean, soy oil and soymeal are
also widely traded globally with annual trade of
around 9 million tonnes and 52 million tonnes
respectively.
• . While, US is the largest exporters for
soybeans, Argentina is the largest exporter of soy
oil and soy meal globally
7. Important World Soy Markets
• Chicago Mercantile Exchange, which acquired
Chicago Board of Trade –
• theworld's oldest soy futures market
Dalian Commodity Exchange –
• trades the most liquid soybean contracts in
the world
8. India in World Soy Industry
(Rounded figs.) Global India % Share
(In million tons)
Soybean Production 230 9 4
Soybean Trade 75 0 0
Soy Oil Production 35 1.5 4
Soy Oil Imports 9 1 11
Soy Oil Exports 9 0 0
Soy Meal Production 150 7 5
Soy Meal Exports 52 3.5 7
Soy Meal Imports 52 0 0
9. Indian Scenario
• India's annual production of soybean has been around
8.5-10 million tonnes in the recent years with India's
production in 2009-10 estimated to be around 8.9 million
tonnes by the Government of India.
• The acreage under this crop has more than doubled in
the past two decades to around 11 million hectares
currently being sown under this crop, with better returns
encouraging more farmers to adopt this new crop
• Madhya Pradesh, Maharashtra, Rajasthan and
Andhra Pradesh are the major cultivators of this
important oilseed, with their respective contributions
usually around 60%, 25%, 6-7% and 1-2%
10. • Soybean is exclusively grown in the khariff
season in India, with sowing taking place after
the first monsoon showers in late June or early
July. Sowing can extend upto end of July in
different parts of the country
• The harvesting commences from
September, with Maharashtra reporting the
earliest arrivals. October and November are the
peak arrival months, with all-India arrivals
crossing 10 lakh bags of approximately 90 kg on
the peak arrival days
• The production is dependent on the monsoon
and fluctuates between years
11. • India is highly dependent on imports to meet
domestic edible oil requirement. Government policies
are in favour of developing the domestic crushing
industry and supporting Indian farmers and do not
promote import or export of soybean. Thus, there is
virtually no import or export of soybeans
• However, India out of its total soymeal production of
around 6.5-7 million tonnes, exports around 3.5
million tonnes with
Vietnam, Japan, Thailand, Indonesia, UAE, Greece
being the major importers
12. Major Trading Centres
• Indore, Ujjain, Dewas, Mandsore in Madhya
Pradesh, Akola, Sangli, Nagpur in
Maharashtra, Kota in Rajasthan are major
trading centres.
13. Market Influencing Factors
• Domestic prices are highly influenced by the global
price movements, with prices highly correlated with
the CME prices
• Fundamentally, weather at all producing
centers, domestic and international is the most
crucial factor, with the pod bearing period, being the
most crucial
• United States Department of Agriculture makes
progressive assessment of crops, stocks, global supply
and demand and releases regular reports, which are
widely looked upon by the global market to
determine prices
14. • The other major influencing factor is the
prices of soy oil and soymeal, which are in-
turn dependent on the fundamentals of
global edible oil and global animal feed
industry.
• Locally, prices are influenced by currency
fluctuations, weather, acreage, pest &
diseases, production estimates by industry
associations, Government agencies
15. •India imports more than 60% of its entire
edible oil requirement and the entire edible
oilseed and oil sector is a highly sensitive sector.
Thus, new Government policies and
apprehensions about new policies have a strong
sway over prices, during periods when new
announcements are made or are about to be
made.
•The supply-demand and price scenario of
competitive oils, viz., palmoil.
The crush margin between meal, oil and seed
16. • Symbol
• Description
• Contract listing
• Last trading day
• Trading unit
• Base value
• Maximum order size
• Daily price limits
• Initial margin
• Price quote
17. • Special margin
• Maximum allowable open position
• Delivery unit
• Delivery center
• Additional delivery center
• Moisture
• Foreign matter
• Damaged seeds
