Americal Soyabean Association Soya Importers Guide

2. SOY IMPORTERS GUIDE
Copyright ©2005 American Soybean Association International Marketing Southeast Asia
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system
or transmitted, in any form or by any means, electronic, mechanical, photocopying or otherwise,
without the prior permission of the copyright owners.
M04GX19403–092005–0500

3. soy importers guide

4. American Soybean Association (ASA) International Marketing is a
non-profit, single commodity organization working towards the promotion of
soybeans as a viable crop. Its objective is to develop the market for soybeans while
ensuring the ongoing demand from food and feed processors for this valuable raw
material. ASA also encourages the development and promotion of soy-based
products.
ASA’s members include farmers, soybean handlers, oilseed crushers, feed
manufacturers, seed suppliers, fertilizer and agricultural chemical organizations,
government officials and related agencies. ASA works with the US Department of
Agriculture, Foreign Agriculture Service, United Soybean Board, and local groups
and individuals involved in the utilization, consumption and marketing of soybeans
and soybean products.
02 Headquartered in St Louis, Missouri, the organization’s international marketing
program, aimed at keeping soybean production profitable, extends to 8 offices,
spanning more than 77 countries worldwide. In addition to promoting the use of
soybeans and soybean products, ASA fosters research, supports feeding trials,
and serves as a resource to increase the technical knowledge and range of soy-
based products available in the global market.
For more information on soybeans and soybean products, contact:
ASA International Marketing Southeast Asia
541 Orchard Road
#11-03 Liat Towers
Singapore 238881
Tel: (65) 6737 6233
Fax: (65) 6737 5849
Email: asaspore@pacific.net.sg

5. Contents
04 History of the Soy Importers Program
09 Introduction to Soybeans
17 Quality Standards for US Soybeans and Soybean Products
25 Procuring Soybeans and Soybean Products
31 US Bulk Handling and Export System
35 Specialty / Identity Preserved Soybeans
39 Payment Options
03
45 Risk Management
51 Glossary
59 Useful Resources

6. History of the Soy Importers Program
In 1997, the American Soybean Association (ASA) began a series of trade programs
specifically aimed at educating importers in Southeast Asia on the benefits of
importing US soybeans and soy products. The program series served to empower
them with information on how to be more effective in a highly competitive domestic
and global business environment, so as to synchronize their existing technical
programs with the fundamentals of the trade as part of the buying equation.
Hence, between 1997 and 1999, seminars that covered the commercial aspects
of the trade were conducted in the region under the Soy Importers Workshop and
04 Risk Management Series.
The program objectives were to:
• provide an understanding of the crucial role the Chicago Board of Trade plays
in affecting price movements, and how other market forces affect these
fluctuations
• present concepts and theories for managing commodity prices using futures
and options
• assist with the establishment of effective risk management to enable customers
to have more direct control over their buying decision
• educate customers on the effectiveness of the US commodity handling system
and development of infrastructure from competing markets
• analyze global market forces and conditions affecting the freight industry; and
other forces affecting the production and demand for US soybeans and soybean
meal
• assist customers with the application of these tools to meet domestic needs
To meet the challenges of the new decade such as the continued expansion of the
South American soybean market, global consumer acceptance of agricultural
biotechnology, and erratic international economies, ASA forged ahead with the
development of a more advanced program series. The new program is designed

7. to equip customers with updated information and new technologies to ensure
that they understand the intrinsic value of using quality ingredients, and are able
to make sound decisions beyond price considerations to ensure profitability.
To take this concept further and customize it to address specific needs within
individual companies, ASA currently conducts workshops under its Preferred
Customer Program. Through the in-house program, core decision makers of the
company that include finance purchasing, logistics and nutrition managers are
able to participate and benefit from this highly dynamic and hands-on computer
based program facilitated by ASA's technical personnel and consultants. The aim
is to demonstrate that no departmental decision should be made in isolation, as
bottomline profits depend on a cohesive buying strategy involving all departments.
05
About the Soy Importers Guide
The Soy Importers Guide serves as an easy reference tool to assist buyers and
importers with the import of soybeans, soybean meal, soybean oil and other soy
products from the United States. The information contained provides a general
overview of US soybean production and processing, quality standards and
inspection, procurement, payment options, risk assessment tools, and useful
resources and web links.
The Soy Importers Guide is produced under the direction of the American Soybean
Association (ASA) International Marketing with funding from the United Soybean
Board (USB). The United States is the world's premier producer and exporter of
soybeans and ASA is proud to represent those interests from eight offices around
the world. This handbook is just one of the many importer services which ASA
offers consumers of US soybeans, and other soy products.

9. Introduction
to Soybeans

11. Introduction to Soybeans
Often referred to as the miracle crop, the soybean is the world’s leading provider
of protein and oil. More soybeans are grown in the United States (US) than anywhere
else in the world. In 2004, US soybean farmers in over 31 states harvested 74
million metric tons of soybeans. A 60-pound bushel of soybeans yields about 48
pounds of protein-rich meal and 11 pounds of oil.
The primary use of whole soybeans and protein from soybean meal is to provide
a low-cost, high protein feed ingredient for fish, poultry, swine, cattle, and other
animals. Other uses range from tofu and soy sauce, to soy flour used in baked
goods and high fiber breads. In addition, the protein is used in industrial products
such as plastics, wood adhesives, and textile fibers.
09
Soybean oil is the leading vegetable oil in the world. Uses of soybean oil range
from margarine to salad dressing and mayonnaise. Examples of industrial applications
include the use of the oil as a carrier in inks and paints. Soybean oil also provides
an environmentally friendly fuel for diesel engines.
Soybean Planting, Harvesting and Distribution
Planting
The process begins in the field with the soybean seed planted in spring or early
summer. Planting dates vary depending on the latitude and geographic region.
Classification of soybean cultivars into maturity groups help US farmers choose
correct varieties for their regions. Farmers may plant 6 to 10 different varieties of
soybeans each growing season. Seeds develop in pods with each pod containing
1-5 seeds, but the most common varieties contain 2-3 seeds per pod.
Harvesting
Soybeans are considered dry mature when seed moisture reduces to less than 14%
in the field. Harvesting date depends on the variety, growing regions, planting

12. date, and local weather conditions. The most active harvest periods are during the
months of October and November. In the US, almost all soybeans are harvested
by combines. The seeds are threshed out from pods into a hopper and moved into
a transport truck. If moisture content is more than 14%, soybeans need to be dried.
Once dried to the appropriate moisture content, seeds are transferred to storage
facilities. Proper handling of the soybeans during harvest and storage is critical
to protect the beans from damage.
Distribution
Soybeans are stored at farms, elevators, and processing plants in various types
of storage facilities before being channeled to the next destination. Local elevators
will store and condition the soybeans before selling and shipping to a soybean
10 processor or export elevator. Farmers may also transport soybeans by truck to a
regional transport facility such as a railroad or river terminal for shipment directly
to a grain buying station, processing plant, or harbor facility for shipment overseas.
Once the soybeans are sold to local, national or international processors, they are
refined into various products in many different countries. Soy processors convert
soybeans into products made from whole soybeans, such as tofu, tempeh, miso,
natto, soy sauce, some soy flours, soy nuts, and soymilk. Other soybeans destined
for more traditional food and technical products are graded, cleaned, dried, and
cracked to remove the hull. Soybean hulls are further processed for animal feed
or fiber additives for breads, cereals, and snacks.
Soybean Processing
Whole Soybeans
Whole soybeans are the edible seeds of the soybean plant. They are high in protein
and contain beneficial phytochemicals, such as isoflavones. The mature soybean
is about 38% protein, 30% carbohydrate, 18% oil, and 14% moisture, ash, and
hull. Whole soybeans can be cooked and used in sauces, stews, and soups. Whole
soybeans that have been soaked can be roasted for snacks.

13. Soybean Meal
Soybean meal is a premium product because of its high digestibility, high energy
content and consistency. Over 80% of the soybean meal produced in the US is
dehulled and processed in large state-of-the-art solvent extraction facilities. High
quality standards and an efficient production, handling and shipping industry in
the US ensure that export customers receive a consistent and high value product.
Properly processed dehulled soybean meal is an excellent source of protein and
is used extensively in feed for swine, beef and dairy cattle, poultry, and aquaculture.
Soybean meal is ideal for high-energy rations such as broiler, turkey, and pig
starter feeds. For young animals and birds, dehulled soybean meal is the preferred
product.
Soybean Oil
Soybean oil is the world’s most widely used edible oil. In the United States, it
11
accounts for nearly 80% of edible oil consumption. Soybean oil’s 85% unsaturated
fat profile is among the lowest of the vegetable oils and contains 61% polyunsaturated
fat and 24% monounsaturated fat. Almost all margarine and shortenings contain
soybean oil. It also is frequently found in mayonnaise, salad dressings, frozen
foods, imitation dairy and meat products and commercially baked goods. Soybean
oil has little flavor, which is an advantage because it does not interfere with the
taste of food.
Soybean oil is also used commercially in the manufacture of glycerin, paints, soaps,
rubber substitutes, plastics, printing ink, and other products.
Soy Protein
In 1999 the Food and Drug Administration (FDA) announced that foods containing
soy protein may reduce the risk of coronary heart disease (CHD). Foods that meet
the new FDA guidelines can now label their products with this claim. The soy health
claim is based on the FDA’s determination that 25 grams of soy protein per day,
as part of a diet low in saturated fat and cholesterol, may reduce the risk of heart
disease by reducing blood cholesterol levels.
Processed soybean protein products are divided into three categories based on
protein content: soy flour, concentrates, and isolates. Soy flour is made from roasted

14. Tofu Tempeh
soybeans ground into a fine powder and contains 50% protein. Soy flour is gluten-
free, so yeast-raised breads made with soy flour are dense in texture. Soy grits are
similar to soy flour except that the soybeans have been toasted and cracked into
coarse pieces. Soy concentrates come from defatted soy flakes and contain 70%
protein. It is a highly digestible source of amino acids and retains most of the
SOYBEAN’S MANY USES
Glycerol
Fatty Acids Oil Products
Sterols
12 Refined Soyoil Soybean Lecithin
Edible Uses Technical Uses Ediible Uses
Coffee Creamers Anti-Corrosion Agents Emulysifying Agents
Cooking Oils Anti-Static Agents Bakery Products
Filled Milks Caulking Compounds Candy/Chocolate Coatings
Margarine Core Oils Pharmaceuticals
Mayonnaise Diesel Fuel
Pharmaceuticals Disinfectants Nutritional Uses
Salad Dressings Dust Control Agent
Dietary Technical Uses
Salad Oils Electrical Insulation
Medical Anti-Foam Agents
Sandwich Spreads Epoxys
Shortenings Fungicides Alcohol
Ink - Printing Yeast
Linoleum Backing Anti-Spattering Agent
Metal - Casting/Working
Oiled Fabrics Margarine
Paints Dispersing Agents
Pesticides Paint
Plasticizers Inks
Protective Coatings Insecticides
Putty Rubber
Soap/Shampoo/Detergents Stabilizing Agent
Vinyl Plastics
Wallboard Shortening
Waterproof Cement Wetting Agents
Calf Milk Replacers
Cosmetics

15. Soy Flour Soymilk
bean’s dietary fiber. When protein is removed from defatted flakes the result is soy
protein isolate, the most highly refined soy protein. Containing 90% protein, isolates
possess the greatest amount of protein of all soy products. They are a highly
digestible source of amino acids and because of the bland taste can be added to
food without jeopardizing its flavor or characteristics.
Whole Soybean Soybean Protein Products
Products
Edible Uses
Seeds Soy Flour Concentrates & Isolates Soybean
13
Stock Feeds Meal
Soy Sprouts
Baked Soybeans Technical Uses Edible Uses Feed Uses
Full Fat Soy Flour Adhesives Alimentary Pastes Aquaculture
Bread Analytical Reagents Baby Food Bee Foods
Candy Antibiotics Bakery Ingredients Calf Milk Replacers
Doughnut Mix Asphalt Emulsions Beer & Ale Cattle Feeds
Frozen Dessert Binders-Wood/Resin Candy Products Dairy Feeds
Instant Milk Drinks Cleansing Materials Cereals Fish Food
Low-Cost Gruels Cosmetics Diet Food Products Fox & Mink Feeds
Pancake Flour Fermentation Aids/Nutrients Food Drinks Pet Foods
Pan Grease Extender Films for Packaging Grits Poultry Feeds
Pie Crust Inks Hypo Allergenic Milk Protein Concentrates
Sweet Goods Leather Substitutes Meat Products Swine Feeds
Paints - Water Based Noodles
Roasted Soybeans Prepared Mixes Hulls
Particle Boards
Candies/Confections Plastics Sausage Casings Dairy Fee
Cookie Ingredients/Topping Polyesters Yeast Filter Material
Crackers Pharmaceuticals High Fiber Breads
Dietary Items Pesticides/Fungicides
Fountain Topping Textiles
Soynut Butter
Soy Coffee
Traditional Soyfoods
Miso
Soymilk
Soy Sauce
Source: American Soybean Association
Tofu
Tempeh

17. Quality
Standards for
US Soybeans
and Soybean
Products

19. Quality Standards for US Soybeans and Soybean Products
The US market for soybeans and soybean products is well established with quality
standards specified by either government decree or industry adopted trading rules.
In fact, they are governed by both contract specifications and a government
regulated system of guidelines that control inspection, sampling, grading and
weighing of grain and oilseeds. These standards and inspection procedures are
designed to ensure a uniform product and to facilitate the efficient trading and
marketing of US grain and oilseeds. For soybeans, the bulk of these standards and
inspection procedures are maintained by the Federal Grain Inspection Service
(FGIS). For soybean products, they are established and maintained by the National
Oilseed Processors Association (NOPA). As a result of such an open system the
US has the ability to provide a wide array of quality of soybeans and soybean
17
products desired and specified by buyers with varied end use requirements.
Federal Grain Inspection Service (FGIS)
FGIS is a division of the recently created Grain Inspection, Packers and Stockyards
Administration (GIPSA). FGIS facilitates the marketing of grain, oilseeds, pulses,
rice and related commodities. It provides farmers, grain handlers, processors,
exporters, and international buyers with information that accurately and consistently
describes the quality and quantity of grain being bought and sold.
FGIS currently:
• establishes and maintains official US standards for grain (barley, canola, corn,
flaxseed, oats, rye, sorghum, soybeans, sunflower seed, triticale, wheat and
mixed grain), rice, beans, peas and lentils
• inspects and weighs all exported grain, oilseed, and related products for domestic
and export trade
• establishes testing methods and procedures, and approved equipment or official
inspection and weighing of grain

20. Foreign Material Soyhulls
• provides a national inspection and weighing system that applies the official
grading and testing standards and procedures in a uniform, accurate, and
impartial manner
• monitors certain grain handling practices to prevent the deceptive use of grading
standards and official inspection and weighing results, and the degradation of
grain quality through the introduction of foreign material, dockage, or other
nongrain material to grain.
US Grains Standards Act (USGSA)
USGSA provides for the establishment of official US grain standards that are used
to measure and describe the physical and biological properties of the grain at the
time of inspection. The grades, classes and conditions reported on official certificates
18 are determined according to the factors defined in these standards. These factors
may include test weight per bushel and percentages, by weight, of damaged
kernels, foreign material, broken kernels and other factors. The certificate also
notes specific conditions of the grain such as moisture content and infestation. No
seasonal adjustments are made on US grades.
Official US Standards
FGIS and Basic Grading Definitions
FGIS defines US soybean as any grain that consists of 50% or more of whole or
broken soybeans that will not pass through an 8/64 round hole sieve and not more
than 10.0% of other grains for which standards have been established under the
USGSA.
There are two classes for soybeans: yellow soybeans and mixed soybeans. Yellow
soybeans are soybeans that have yellow or green seed coats and which in their
cross section are yellow or have a yellow tinge, and may include not more than
10.0% of soybeans of other colors. Mixed soybeans are simply those that do not
meet the requirements of the class of yellow soybeans.

21. Overtoasted SBM Pelleted Soyhulls
Damaged kernels are soybeans and pieces of soybeans that are badly ground-
damaged, badly weather-damaged, diseased, frost-damaged, germ-damaged,
heat-damaged, insect-bored, mold-damaged, sprout-damaged, stinkbug-stung, or
otherwise materially damaged. Stinkbug-stung kernels are considered damaged
kernels at the rate of one-fourth of the actual percentage of the stung kernels.
Foreign material is all matter that passes through an 8/64 round hole sieve and
all matter other than soybeans remaining in the sieved sample after sieving according
to procedures prescribed in FGIS instructions.
Heat damaged kernels are soybeans and pieces of soybeans that are materially
discolored and damaged by heat. Soybeans that have green, black, brown, or
bicolored seed coats are classified as soybeans of other colors. Soybeans that have
green seed coats will also be green in cross-sections of these other colored soybeans.
19
Bicolored soybeans will have seed coats of two colors, one of which is brown or
black and the brown or black color covers 50% of the seed coats.
Splits are soybeans with more than one fourth of the bean removed and that are
not damaged.
A couple of special grades and special grade requirements are garlicky soybeans
and purpled mottled or stained soybeans. Garlicky soybeans are those that contain
five or more green garlic bulblets or an equivalent of dry or partly dry bulblet in
a 1,000 gram portion. Purple mottled or stained soybeans are those with pink or
purple seed coats as determined on a portion of approximately 400 grams with
the use of an FGIS Interpretive Line Photograph.
Other Grading Quality Factors
Interpretive factors can be used under FGIS rule so that visual grading aids assist
inspectors in making subjective grading decisions and to reduce inter-market
differences in inspection results. This consists of Interpretive Line Slides and Interpretive

22. Line Prints. The Interpretive Line Slide system consists of a portable tabletop viewer
and photographic slide transparencies. The Interpretive Line Print and Slides are
photographs and slides that exhibit particular attributes to allow a more uniform
application of the general appearance factors and to aid an inspector in making
grading decisions.
For more information on FGIS and Basic Grading Specifications visit:
www.usda.gov/gipsa/index.html
NOPA and Basic Grading Definitions
NOPA is essentially an industrial association that has its own grading requirements
20 and definition of their terms and guidelines. NOPA grading rules serve to regulate
the trade of the two major processed forms of soybeans, soybean meal and soybean
oil. The rules serve as a guide only for transactions. Parties to such transactions
are free to adopt, modify, or disregard NOPA rules.
Soybean Meal
NOPA standards for soybean meal state that it shall be of fair merchantable quality,
conforming to standard definitions and standard specifications of the association,
as set forth in the NOPA trading rules.
Soybean cake is defined as the product after the extraction of part of the oil by
pressure or solvents from soybeans.
Soybean meal is ground soybean cake, ground soybean chips, or ground soybean
flakes.
Soybean mill feed is the by-product resulting from the manufacture of soybean
flour or grits and is composed of soybean hulls and the offal from the tail of the
mill. A typical analysis is 13% crude protein and 32% crude fiber, and 13% moisture.

23. Soybean mill run is defined as the product resulting from the manufacture of
dehulled soybean meal and is composed of soybean hulls and such bean meats
that adhere to the hull in normal milling operations. A typical analysis is 11% crude
protein and 24% crude fiber and 13% moisture.
Soybean hull is the product consisting primarily of the outer covering of the soybean.
A typical analysis is 13% moisture and varying degrees of protein and fiber.
Solvent extracted soybean flake is the product obtained after extracting part of
the oil from soybeans by the use of hexane or homologous hydrocarbon solvents.
It shall be designated and sold according to its protein.
NOPA’s standard specification for soybean flakes and high protein or solvent
extracted soybean meal are produced by cracking, heating, and flaking dehulled
21
soybeans and reducing the oil content of the conditioned flakes by the use of hexane
or homologous hydrocarbon solvents.
Soybean Oil
NOPA defines the standard of quality for soybean oil as a designated type of pure
soybean oil of fair average quality based on the season's production. This must
conform to standard specifications of the Association, and be made part of NOPA
trading rules and which are subject to modification from time to time as conditions
may warrant and upon the recommendation of the technical committee.
The Association defines the types of crude soybean oil and says that edible crude
soybean oil is any of the following: expeller pressed; expeller pressed degummed;
hydraulic pressed; hydraulic pressed degummed; solvent extracted; solvent extracted
degummed; or mixtures of any of the above types.

24. The primary traded soybean oil in the US is crude degummed soybean oil. It is
defined as the product resulting from removal of phosphatides from crude soybean
oil, and should contain no more than 0.02% of phosphorous as determined by the
American Oil Chemists Society (AOCS) Official method Ca 12-55.
The grade and quality of crude soybean oil sold under this rule are to be any of
the above-designated types and conform to the following specifications:
• not more than 0.5% moisture and volatile matter
• a green color lighter than Standard B
• a refined and bleached color not darker than 6.0 Red
22 •
•
a neutral oil loss not exceeding 7.5%
not more than 1.5% unsaponifiable matter (exclusive of moisture and insoluble
impurities)
• a flash point not lower than 250˚F
For more information on NOPA and Basic Grading Specifications visit:
www.nopa.org

25. Procuring
Soybeans
and Soybean
Products

27. Procuring Soybeans and Soybean Products
The American Soybean Association (ASA) does not buy or sell soybeans for export.
ASA actively conducts programs and disseminates information for the promotion
and expansion US soybean and soy product exports. The Chicago Board of Trade
futures, storage, handling and transportation costs, insurance premiums, profit
margins, etc., subject to supply and demand forces, determine the international
market price for soybeans and soybean meal at a particular time and place. The
United States is one of the world’s largest producers of soybeans (40%) and soybean
meal (27%).
World Soybean Production 2004/05
25
s United States 40%
s Brazil 24%
s China 8%
s Argentina 18%
s European Union 2%
s India 2.5%
s Others 5%
World Soybean Meal Production 2004/05
s United States 27%
s Brazil 16%
s China 17%
s Argentina 16%
s European Union 9%
s India 3%
s Others 9%
For market and trade data updates, visit www.fas.usda.gov/currwmt.asp

28. Identifying Suppliers
There are many sources an importer can access to locate the names of potential
soybean and soy product exporters. The following groups will assist importers with
contact names of interested suppliers.
American Soybean Association
ASA is a private, non-profit organization with the goal of developing and expanding
export markets for US soybeans and soybean products. Headquartered in St. Louis,
Missouri, ASA maintains offices in eight countries. The regional office located in
Singapore can assist importers in the Southeast Asian region with the search for
US suppliers. For further information contact: ASA International Marketing Southeast
26 Asia, 541 Orchard Road, #11-03 Liat Towers, Singapore 238881, Tel: (65) 6737
6233, Fax: (65) 6737 5849, Email: asaspore@pacific.net.sg Website:
www.asasea.com
North American Export Grain Association (NAEGA)
NAEGA is a trade association whose members include many private companies
and cooperatives that handle a large percentage of US soybean product exports.
Located in Washington, DC NAEGA provides importers with names of interested
suppliers of US soybeans and soybean products. For more information contact:
NAEGA, 1030 15th Street, NW, Suite 1020 Washington, DC 20005, USA, Tel:
(202) 682 4030, Fax: (202) 682 4033.
US Agricultural Offices
In most US Embassies around the world, you can find an agricultural attachè (or
commercial officer), representing the Foreign Agricultural Service (FAS) of the US
Department of Agriculture (USDA). The agricultural attaches can offer local importers
a broad range of information regarding US government-assisted export programs
(for example, GSM programs) as well as assistance in finding potential suppliers.
Additionally, interested importers can contact their local commercial banker or the
branch office of a US based commercial bank for a list of potential suppliers.

29. Purchase Contract
Once a potential supplier(s) of US soybeans (or products) is identified, the importer
should determine how offers will be evaluated. The importer can choose between
a direct, private negotiation at one extreme or a public, formal invitation for bids
(IFB) at the other extreme. Standard contract forms are available and cover the
vast majority of the contractual details encountered in normal transactions. These
standard contract forms for FOB transactions are under NAEGA No.2, FOSFA
(Federation of Oils, Seeds, and Fats Association Limited) 3, and GAFTA 119 (for
soybean meal). For CIF contracts, GAFTA (Grain and Feed Trade Association) 27
or 30 and FOSFA 54 are the general contract forms, and importers should make
themselves very familiar with these various documents.
27
For more information, visit www.asasoya.org/import/points.htm
Points to Consider Before a Purchase Contract is Initiated
For the buyer of US soybeans or soybean products, there are several factors that
must be considered before a purchase contract can be initiated.
Contact Information
US and international
(name/title/business/country/
bank references
address/phone/fax/e-mail)
Type of buyer
Financing/credit considerations
(examples: merchandising company,
(examples: user of US government credit
broker, feed manufacturer, industrial programs, private financing, specific
further processor, government financial needs)
buying agency, etc.)
Quantity Date bids due and delivery
(specific metric ton requirement) (shipment) period
Quality and specifications Shipment details
desired (be specific) (FOB, CIF, port of shipment/
destination, etc.)

31. US Bulk
Handling
and Export
System

33. US Bulk Handling and Export System
The United States has the most extensive and efficient system of capital assets
devoted to the handling and processing of grain and oilseeds in the world. The
combination of private initiative and capital investment has exploited modest public
investments in infrastructure and regulation to create a system of unique transportation
and handling alternatives where competition has driven down the costs of getting
America’s agricultural products to the consumer.
Shipping and Handling
Equipped with one of the most modern port systems in the world, the US can
efficiently deliver shipments of soybeans and soybean meal from virtually every
major coastal outlet in the country. Large export orders travel by barge down the 31
Mississippi River system, and are loaded into large ships leaving from New Orleans.
Major river systems in the U.S.
The Mississippi is the nation’s most important waterway.
Seattle • Columbia
Portland •
Grays Harbor •
Missouri
Snake Hudson
Wisconsin
North Platte
Pacific Ohio
Platte
Northwest
Illinois
Arkansas
• Norfolk
Mississippi Tennessee
Canadian
Red
Alabarna
Chattahooche
• Mobile
• Major U.S. Ports
•
New Orleans
U.S. GULF

34. Alternatively, shipments to Asia can also be executed off the Pacific Northwest
where, similar to the US Gulf, cargoes can be loaded into various sized vessels
in single or multiple commodity shipments. Soybean meal may also be exported
from the US Eastern Seaboard or through its Great Lakes.
Gulf Coast (US Gulf)
The Mississippi River, regarded as the transportation gateway to the interior of the
US, commands a fleet of over 11,500 hopper-covered barges, towed by 2,000
towboats that ply the river with bulk cargo. Another fleet of tank barges caters to
viscous cargoes, such as soybean oil. There are nearly 6,000 miles of navigable
routes in the Mississippi River Basin including the Mississippi, Missouri, Ohio,
32 Illinois, Arkansas, Tennessee, White, Cumberland, Alabama and Minnesota rivers.
Through this system, river transportation reaches every major soybean producing
state in the US providing access to 80% of the US’s soybean production.
Pacific Northwest (PNW)
The Pacific export range facilities have a freight advantage over the other ranges
to destinations in Asia, offering a much shorter distance from the Pacific Northwest
to Asian destinations, and correspondingly cheaper ocean freight. The port facilities
are just as efficient as those found in the US Gulf.
The Great Lakes
The rising popularity of the Mississippi River barge system has seen a slip in the
importance of the Great Lakes despite its unique inland waterway. The St Lawrence
Seaway provides access to the Lakes’ ports that connects Lake Superior, Lake Huron,
Lake Erie and Lake Ontario. Following the completion of the Seaway, a separate
class of vessels was specially built – with the specific intention of plying the waters
of the Great Lakes.

35. Specialty /
Identity
Preserved
Soybeans

37. Specialty / Identity Preserved Soybeans
Food beans have been selected and bred over the past several decades for making into
various types of soyfoods for direct human consumption. They are called specialty or
identity-preserved (IP) soybeans, and usually carry a premium price in the market.
Production for this category of soybeans requires a uniform and uncontaminated supply
of quality soybeans, with only the particular traits desired by the end user. As such,
production and handling of specialty or IP soybeans must be done under a controlled
system of identity preservation.
Handling Process for IP Soybeans
Contract
Growers produce IP crops
Farm
Specific varieties are grown
Bagging for Transport
Farmers transfer crops to
35
on an individual contract under contract, harvested bags or sealed containers,
basis. Farmers and buyers and stored separately on the maintaining separate
contract well in advance of farm. Buyers often provide distribution lines for specific
planting for a specific variety the seed. varieties.
at a specific premium.
Ships Delivery to Port Elevator
The IP shipments are loaded IP crops are loaded into IP varieties are graded and
onto container ships into containers or dedicated handled using special
separate holds or barges carrying limited procedures. They are stored
compartments and stored cargo, or otherwise shipped in separate bins, containers
completely separated from by railroad. or silos.
other shipments during the
trans-oceanic trip.
Port of Discharge Transport Storage at Processors
On arrival, the shipments are Distribution to overseas The IP deliveries are stored
unloaded using a dedicated customers from the entry port in separate dedicated
system and stored separately us carried out using coastal storage.
from other shipments. vessel, barge, truck or
railroad – maintaining
separation from other crops
throughout. Processing
Specific varieties are
processed using separate
batch runs or lines for
high-value products.

39. Payment
Options

41. Payment Options
Of critical importance to any international commodity transaction is the determination
of how the payment for goods will be handled. This is often the first question asked
of a potential importer by an exporter of US soybeans and/or its products. The
ability of a potential importer to address this issue early in the commodity procurement
process will not only reduce the time necessary to complete negotiations but help
the importer arrive at a more favorable price as well.
Letter of Credit (LC)
The Letter of Credit (LC) is the most common payment standard for the
international grain trade. The LC should set a time limit for completion and
specify the exact documents necessary to fulfill the terms of credit. A common
payment term required by many exporters is for the LC to be advised to and
39
confirmed by a “first class US or Western European bank acceptable to the
seller.”
Payment options vary in cost to the importer and/or exporter and degree of risk
exposure, both in terms of monetary exposure and performance risk. In examining
the various payment options, the importer should always bear in mind that local
laws and regulations may influence both these factors.
The importance of food relations between importers and exporters is critical to the
success of domestic and international trade and should not be hampered by poor
communication and lack of effective follow-up. It is important to view each trade
with a long-term outlook, and build enough flexibility in all aspects of operations
to ensure successful trading.

42. USDA Export Credit Guarantee Programs
The United States government, through the United States Department of Agriculture
(USDA), in recognizing the need to minimize payment risks to exporters and
facilitate US grain, soybean and soy product exports annually establishes and
funds export credit guarantee programs. The two largest programs, the Export
Guarantee Credit Program (GSM-102), and the Intermediate Export Guarantee
Program (GSM-103) provide financing for over 5 billion US dollars of US agricultural
exports.
Key points of the Export Credit Guarantee Programs:
40 • The GSM-102 and GSM-103 are administered through the Commodity
Credit Corporation (CCC), a division of the USDA.
• The CCC provides a partial guarantee on the foreign credit risk posed to
US financing banks (98% of the FOB value of the export). On an exception
basis, the guarantee may also cover freight costs.
• Validity for a GSM-102 guarantee may range from 90 days to 36 months;
validity for a GSM-103 guarantee may range from 36 months to 10
years, but is generally granted to 7 years.
• The GSM guarantee allows US banks to offer low interest rates and
extended loan tenors to foreign banks which may in turn, extended
favorable terms to their importer clients.
• GSM funding is structured as bank-to-bank refinancing of a letter of
credit; the letter of credit is issued by the importers bank and refinanced
by the US bank. The importer’s bank has discretion to extend the GSM
financing terms to the importer.
• The importer’s bank, as well as the US exporters and banks must be
approved by the CCC for GSM business. Importer approval is not required.
• A wide variety of US agricultural products may be re-exported under
GSM. The program announcement for each country or region lists the
approved products.

43. Another of these programs is the Supplier Credit Guarantee Program (SCGP). The
SCGP is unlike any other credit guarantee or insurance program in the world. It
is designed to make it easier for exporters to sell US food products overseas by
insuring short-term, open account financing. Under the security of the SCGP, US
exporters become more competitive by extending longer credit terms or increasing
the amount of credit available to foreign buyers without increasing financial risk.
Foreign buyers benefit because they can increase their purchasing power and
profit opportunities, and gain significant cash flow management advantages.
Twelve steps to participating in the Supplier Credit Guarantee
Program:
• The exporter must qualify as a program participant.
41
• He must determine if the USDA has announced credit guarantee coverage
for the importing country and product to be imported.
• Both the exporter and importer negotiate terms of the export credit sale
including arrangements for execution of the promissory note.
• Once a firm sale exists, and before export, the US exporter applies for
payment guarantee from USDA.
• The exporter pays the guarantee fee to USDA.
• The importer executes a US dollar promissory note.
• The exporter ships the product as agreed.
• The exporter submits evidence of export report (EOE) to USDA.
• For immediate payment, exporters may assign guarantee to a US financial
institution.
• The importer receives the products and makes payment as outlined in the
promissory note.
• If payment is late, the exporter must inform USDA.
• USDA will pay claims that are in good order and will seek the full overdue
amount from the importer.
For the latest and complete details regarding these programs, please visit
the USDA website at http://www.fas.usda.gov/excredits/default.htm

45. Risk
Management

47. Risk Management
The business of producing, consuming, and trading in soybeans and their products,
otherwise known as soybean complex, is one that is fraught with uncertainties.
These uncertainties come in many shapes and sizes and return seasonally with the
cyclical nature of the growing season, manifesting themselves most obviously in
price risk. While there are many risks associated with a business dealing in soybeans
such as transaction risk, execution risk, production risk, and systemic risk – it is
price risk that offers the most visible threat to a firm’s economic health.
Soybean and soy product importers first need mechanisms to help them discover
market price when a decision to buy or sell a commodity is demanded of them.
Once the market price is identified, they must find a mechanism to reduce the price
risk between the time of transaction and the actual delivery of the goods if they
45
are, like most of us, risk averse; the most common mechanism or tool being the
forward cash contract, the most visible the futures contracts traded in the soybean,
soybean oil, and soybean meal futures and option pits at the Chicago Board of
Trade.
Common Risk Management Tools
Forward Cash Contract
A forward cash contract can be an effective method of risk management for soybean
complex market participants. The purchase or sale of the physical commodity in
the cash market for delivery at a specified later date is the most common form of
cash trade. The forward cash contract involves a direct relationship between two
individual parties, each of whom acts as his or her own guarantor. The major
attraction of the forward cash market is that the buyer or seller who needs to
manage price risk can secure a transaction that eliminates exactly that price risk
from which he is seeking relief. Depending on the liquidity of trade, the governing
rules of trade and the availability of quality trading partners, the forward cash
markets are an effective and efficient tool for managing price risk.

48. Exchange Traded Futures
The first risk management tool grain producers and consumers may use to minimize
risk is the exchange traded futures contract. At futures exchanges such as the
Chicago Board of Trade (CBOT), futures contracts are traded between market
participants. A futures contract is an agreement to purchase or sell a commodity
for delivery in the future at a price that is determined at initiation of the contract.
This contract then obligates each party to fulfill its terms at the specified price by
either the delivery of the standardized quantity and quality of the commodity, or
by offset.
Exchange Traded Option
At futures exchanges across the globe, another form of risk management has
46 developed over the last 25 years. The exchange traded option on a futures contract
is a unilateral contract which gives the buyer the right to buy or sell a specified
quantity of a commodity at a specific price within a specified period of time,
regardless of the market price of that commodity. Exchange traded options actively
trade at the futures exchanges in the US and abroad and they are an integral part
of many feedgrain risk management programs.
Over the Counter (OTC) Swap
A relatively new risk management tool available to soy complex market participants
is the over the counter or OTC swap, derivative and trade option market. A swap
is a forward contract with the price typically fixed at inception against an underlying
index or indices. Settlement can be agreed on the basis of the value of that index
or those indices at any single point in the future, but is usually the basis of an
average of values over a pre-determined period of time. A swap does not generally
convey the right or obligation for physical delivery.
Derivatives
Derivatives are called such because they derive their value from another instrument.
A broad definition would include products traded on established futures exchanges,
both futures and options, as well as the swap products above. In general use, the
term derivative is distinguished from other forms of risk management first according
to whether their primary use is for shifting market risk and, second, in that they
incorporate characteristics of two or more of the other tools discussed earlier.

49. Trade Options
A Trade Option is a combination of the derivative market and the cash market.
Rather than requiring delivery of the physical commodity as in forward contracts,
a trade option would allow cash traders to utilize the rights involved in exchange
traded options in the cash markets. A trade option is generally an OTC contract
between commercial interests that would give the buyer the right to purchase or
deliver grain against a set price and time period.
For more information on soy visit http://www.asasea.com/soyi.html or
http://www.cftc.gov/opa/brochures/opaeconpurp.htm
47

51. Glossary

53. Glossary
Advice of fate Importer’s bank notification Bull One who is bullish or believes the
and confirmation to seller’s bank that the market will trade higher.
draft and documents have either been
accepted or rejected under the collections Bull spread The simultaneous purchase
method of financing grain purchases. of futures or cash in a nearby period and
the sale of like futures or cash in a deferred
Amino Acids Chief components and period. The trader profits when the spread
determinants of the characteristics of a narrows.
protein; the building blocks of living tissues.
Eighteen different amino acids commonly Bullish Any factor affecting the market,
occur in our food supply and eight are causing it to trade higher.
considered essential because the body cannot
make them. Carrying charges The difference in price
between one period to another, carrying
Basis The difference between the cash charges can be positive or negative. When
price for a commodity delivered and the they are positive the market is said to be “at
futures price for any given contract month a carry”; when they are negative “in an
of the same, or different, commodity. When inverse.”
the cash price is below the futures price, the
basis is negative; when above the futures Cash basis The basis of a physical
price, the basis is positive. The basis is commodity in a given market; i.e. “the cash
determined by traders of grain. The basis for Toledo corn.”
predictability of the basis is very important
to the hedger. Cash grain The physical commodities,
the definition encompasses all or any markets.
Bear One who is bearish or believes the
market will trade lower. Cash market A market in which buyers
and sellers purchase/sell physical
51
Bear spread A short spread in the futures commodities. This can refer to a specific
or cash markets. A trader buys futures or place, but it can also refer to the transactions
cash for the more distant period and sells themselves and need not be confined to any
the futures or cash of a nearby period which one place.
he believes overvalued. The trader profits
when the spread widens. Cash position A trading position in a
physical commodity.
Bearish Any factor affecting the market
that causes it to go down. Cash price The price of the physical
commodity.
Bill of Lading Document that conveys the
title to the goods; a contract by a carrier for Confirming bank The financial institution
delivery of the goods; and a receipt for the that confirms payment against presentation
merchandise being shipped. The bill of lading of negotiated documents; preferably a first
may be issued as either straight (non- class US bank.
negotiable) or to order (negotiable).
Cooking oil A refined, bleached, and
Bleaching Treatment of a fat or oil with deodorized oil which has not been further
a material such as activated charcoal or processed to remove the higher melting point
diatomaceous (Fullers) earth which removes portions of the oil. Cooking oils tend to
or reduces the amount of coloring materials crystallize or set up semi-solid at temperatures
normally present in a refined oil. The much below about 70˚F. For this reason,
bleaching process may be carried to the heating coils should be installed in storage
degree desired depending upon the color tanks for cooking oils in contrast to salad
required by the eventual usage of the oils where no heating coils are usually
processed oil. necessary.

54. Cracking The breaking of the whole seed commodity deliveries on futures contracts
into several pieces to facilitate dehulling and upon their maturity.
flaking.
Delivery period The time period within
Crude soy oil Sometimes referred to as which a buyer will provide a vessel to receive
crude raw soybean oil; the unrefined oil delivery on FOB contracts.
produced by any one of the procedures
described for the extraction of oil from Delivery points Those locations and
soybeans. It is customary to filter the oil facilities designated by a commodity
and/or allow it to settle after being processed exchange where stocks of a commodity may
from the soybeans as required by the be delivered in fulfillment of a futures sale
standard trade specifications. Crude soy oil according to exchange rules.
is a mixture of triglycerides composed of
unsaturated fatty acids (oleic, linoleic, Deodorizing A process involving use of
linolenic) and saturated fatty acids, together high vacuum and superheated steam in
with usually not more than 1.5% of free fatty washing of fats and oils. Deodorization
acids and from 1.8% to 3.2% of removes from fats and oils materials originally
phospholipids, depending on the quality present or introduced during previous
and kind of soybeans and the procedure processing which would contribute
used in processing. objectionable flavors and odors to the
finished product.
Dead weight The vessel’s total carrying
capacity, i.e. cargo plus fuel and water and Derivative A risk-sharing instrument that
constant (crew, machinery, spare parts, etc). has the force of a binding contract and
Dead weight cargo capacity is what remains derived from an underlying cash market.
after deducting fuel and water, etc. as above Forward contracts, futures, options on futures
for total dead weight. are all derivatives. In colloquial use
52 Defatted soy flour Flour produced by
the nearly complete removal of the oil from
derivatives often referred to a subset of this
group and defined to be products that have
characteristics of both swaps and options
soybeans by the use of hexane or other and do not trade on an exchange.
homologous hydrocarbon solvents; usually
contains about 1% fat. Diglyceride A chemical combination of
fatty acids and glycerin in the proportion of
Degummed soy oil Sometimes referred two fatty acid units to one glycerin unit. A
to as crude degummed soy oil; the product diglyceride may result from the combination
resulting from washing crude soy oil with of the units or by splitting off one fatty acid
water and/or steam or another degumming unit from a triglyceride during fat breakdown
agent for a specified period of time and then or hydrolysis.
separating the oil-and-water mixture, usually
by centrifugation, to remove the phos- Draft A negotiable instrument containing
phatides. It shall not contain more than an order to pay. A draft can be drawn
0.02% of phosphorus without a discount payable upon demand (sight/demand draft)
penalty. or time. Also known as a bill of exchange.
Degumming The removal of phospholipids Edible crude soy oil Soy oil which shall
from vegetable oil by a water washing step. be of any of the following designated types
produced from mature yellow soybeans:
Delivery When ownership of a given (1) expeller pressed, (2) expeller pressed
futures contract is switched into ownership degummed, (3) hydraulic pressed,
of the actual cash underlying the given futures (4) hydraulic pressed degummed, (5) solvent
contract during its expiration period. extracted, (6) solvent extracted degummed,
and (7) mixtures of any of the above-
Delivery markets Commodity futures described types. When the oil is produced
exchanges which provide for making cash by solvent extraction, the name of the solvent
used in the process must be given.

55. Edible refined soy oil Crude or elevator or vessel or barge. Fumigant, which
degummed soy oil which has been subjected can be toxic, should be handled by a firm
to special refining processes to adapt it licensed by the government.
specifically for use in food products. In
addition to treatment with alkali, bleaching, Fundamental analysis A three-stage
partial hydrogenation, the oils may be also study of the actual supply and demand
winterized. These oils are further classified conditions in order to make price and price
as salad oils, cooking oils, or shortening. trend analysis.
Elevator convenience Elevators generally Futures account An account opened
load vessels of the same commodity in the with a broker to buy and/or seller
order in which they have filed notice of commodities on the futures exchanges.
readiness (NOR.) However, it would not be
unusual to load a soybean vessel with a later Gumming Formation and accumulation
filing date before a corn vessel with an of a fat insoluble sticky material resulting
earlier filing of NOR. This would be elevator from continued heating of fats and oils. The
convenience. However, the charterer’s agent gummy material is produced by oxidation
should investigate if a vessel of the same and polymerization of the fat and represents
commodity with a later filing date is loaded fat breakdown products which collect on
in front of one with an earlier filing date. heating surfaces.
Expeller Equipment for expressing oil Hedging Shifting the price risk to reduce
from oil seeds, consisting of an augur moving or remove any unforeseen price movements
through a slotted barrel through which oil in the future. The risk is shifted to those who
can drain. Also called a continuous screw are willing to take on the risk in hopes of
press. making a profit (speculators).
Extruder A jacketed augur used as an
economical cooker and as a means of
texturizing soy flours or concentrates. Can
High-fat soy flour Flour produced by
adding back soy oil and/or lecithin to
defatted soy flour to a specified level, usually
53
also be used to treat oilseed flakes before in the range of 15%.
solvent extraction.
Hydrogenated soy oil During the
Extrusion A process for texturizing soy process of hydrogenation, the soy oil is
flours or other proteins using high pressures exposed to hydrogen gas in the presence
and temperatures in an extruder. of heat and a catalyst (nickel, copper
chromite) and the hydrogen combines with
Fully refined soy oil The edible oil certain of the chemical components
produced from crude or degummed soy oil (unsaturated fatty acids) of the triglycerides
which has been treated with dilute alkali with a resultant increase in the melting point
solution (caustic refining) or neutralization, of the oil; sometimes referred to as
treated with absorbent clay materials ‘hardening.’
(bleaching) and subjected to steam distillation
at high temperatures under vacuum Hydrogenation The process of chemically
(deodorizing). Such oil may also be produced adding hydrogen in the presence of a catalyst
by a process called physical (steam) refining to the unsaturated, ‘hydrogen short’ portions
which consists of degumming, bleaching of a natural fat. The addition of hydrogen
and neutralization by final step of reduces the reactivity of the fat toward oxygen
deodorizing. and thus stabilizes and retards rancidity
development in the fat. Hydrogenation
Fumigation Application of a pesticide or usually raises the melting point of a fat or
chemical to a cargo in order to rid the cargo changes it from a liquid oil to a solid fat.
of insects. The most common type of fumigant
is phosphine gas, which is applied, in several Hydrolyzed soy protein Made from
different methods, to grain while in the soybean flours, concentrates or isolates,

56. treated with an acid or a base or an enzyme meat in processed items such as patties,
and then dried. chilli, casseroles, etc.
Irrevocable, confirmed documentary Melting point Usually the temperature
letter of credit payable at sight Letter at which a natural or processed fat becomes
of credit which may be canceled only with perfectly clear and liquid or at which a disc
the agreement of the issuing bank, confirming of the fat assumes a spherical shape under
bank and the seller. It specifies the documents prescribed conditions of raising the
which must be presented under the letter of temperature of the fat sample. The greater
credit. The holder (beneficiary) will be paid the degree of unsaturation the lower the
when the documents specified in the L/C melting point. Hydrogenation raises the
are presented to the bank. melting point.
Isolated soy protein Protein which has Positions (long or short) Market
been greatly concentrated and removed commitments. A trader whose purchases
from its native location by chemical or exceed his sales is said to be long or to have
mechanical means. It is generally produced a long position. One whose sales exceed
by extracting protein from white flakes or purchases is said to be short or have a short
flour with water or a mild alkali. Isolates position.
usually have a protein content of at least
90%. Pre-advice The buyer must provide to the
seller the name of the vessel, its date of
Kibbled soybean meal The product readiness at load port, and the capacity of
obtained by cooking ground solvent extracted the vessel prior to the minimum number of
soybean meal, under pressure and extruding days specified in the contract. Ample time
from an expeller or other mechanical pressure must be given for the seller to have the cargo
device. It must be designated and sold available for prompt loading.
54 according to its protein content and shall
contain not more than 7% crude fiber. Price discovery The process by which
the futures and cash markets allow both
Loading berth line-up When the vessel buyers and sellers to find out price at a given
arrives in port and has received its loading moment.
passes, it is entered into the line-up of vessels
in order to take its turn in the loading berth. Prime US bank First class U.S. bank.
Loading charges The price incurred for Refining Treatment of a natural or
the loading of cargo. The charges vary processed fat to remove impurities. Refining
depending on the kind of vessel specified, is accomplished by treatment of the fat with
the port visited, and the time spent at berth. caustic soda, centrifuging, washing with
water and centrifuging gain. The separated
Long position The position of buying a refined fat or oil id dried by heating under
cash commodity or futures contract without vacuum.
having offset that position.
Remittance taxes Taxes paid for
Margin Deposits posted by all futures transferring foreign currency in and out of
buyers or sellers to the brokers handling a country for international transactions.
their accounts, guaranteeing that the
buyer/seller will meet his obligation. Resistance area The point above which
prices have not risen in the recent past.
Market order When a buyer/seller on Indicates that prices should not go above
the futures market informs his broker to the area in (at least) the near future and that
perform a transaction at the market price. it may be a good level to test the short side
of the market.
Meat extenders Use of soy or other
vegetable proteins as partial substitutes for Riders Contract extension clauses which
are attached to standard contracts.

57. Salad oil A refined, bleached and Soy protein concentrate Prepared
deodorized edible oil which has been from high quality sound, clean, dehulled
submitted to a chilling process before soybean seeds by removing most of the oil
packaging. The chilling causes solidification and water soluble non-protein constituents
of the higher melting point portions of the and must contain not less than 65% protein
fat and permits removal of this material on a moisture-free basis.
which would otherwise solidify and cloud
in packaged oil stored at lower climatic Soy protein isolates The major protein-
temperatures. A good salad oil will have a aceous fraction of the soybeans prepared
high Cold Test, i.e. will withstand holding from dehulled soybeans by removing the
for many hours at 32˚F before showing any majority of non-protein components and
signs of clouding. Some oils are natural must contain not less than 90% protein on
salad oils and do not require winterization. a moisture-free basis.
Service and facility charge Charged Soya As with the term soybeans, soya
by export facilities, primarily on the US describes a legume, the botanical name of
Pacific northwest range, to vessels loading which is Glycine max (L) Merrill. Also, soya
at their berths. can be used when describing the entire
plant, crop or category of products derived
Shipment periods Under a CIF or C&F from soybeans. Differentiated from the term
contract, the time period within which the soybeans which can be used to describe the
grain must be shipped. By ‘shipped’, the actual seed of soya. Internationally
market, and most contracts which govern acceptable.
these shipments, means the date of the bill(s)
of lading. Soybeans A legume, the botanical name
of which is Glycine max (L) Merrill; a summer
Shipped weight The weight of the grain annual varying in height from less than a
that is shipped; determined by/under the
supervision of FGIS or a state weighing
agency. Shipped weight is almost always
foot to more than 6 feet and in habit of
growth from stiffly erect to prostate; the
cultivated plant may reach a height of 3 feet
55
the weight that governs. The weight certificate or more. The seeds (soybeans) are borne in
is final. pods that grow in cluster of three to five with
each pod usually containing two or three
Short position The position of selling s more seeds. The oil content of the soybean
cash commodity or futures contract without varies from 13% to 26% (average 18% to
having offset the position with a purchase 22%) and from 38% to 45% protein (on a
of equal size. moisture-free basis.) Soybeans were grown
for centuries in the Orient and first introduced
Shortening A plastic or semi-solid fat to the United States early in the 19th century.
used in the production of bread, cakes and Soybeans grow best in areas having hot,
other bakery products. It is also used for damp summer weather but they can be
frying as it becomes liquid when heated grown under a great variety of climatic
much above 100˚F. It derived its name from conditions.
its effect in making the baked product short
or tender. Soybean cake Product resulting from
the extraction of part or all of the oil by
Soy flour and/or grits The ground, pressure or solvents from soybeans, sold
screened, graded product obtained after according to its protein content and further
extracting most of the oil from selected, described by its process of manufacture.
sound, clean, dehulled soybeans. They are
produced from grinding the defatted soy Soybean extraction/processing The
flakes. Grits are courser ground than soy procedures involved in the separation of the
flour. Protein range is 40% to 60%. It must oil and the protein meal; also called ‘crushers’
contain not more than 4.0% crude fiber. or oil mill operations. There are two types
of processes presently used in the United

58. States for this purpose: (1) Solvent extraction: Soybean meal, dehulled, solvent
the process whereby the oil is leached or extracted Obtained by grinding the flakes
washed (extracted) from flaked soybeans remaining after removal of most of the oil
by the use of commercial hexane as the from dehulled soybeans by a solvent
solvent. The level of oil in the extracted flakes extraction process. It must contain not more
can be reduced to 1% or less by this than 3.5% crude fiber.
processing method. The products resulting
from the use of this process are designated S oy b e a n m e a l , m e c h a n i c a l
in the trade as ‘solvent extracted,’ e.g. extracted The product obtained by
‘Solvent extracted soybean meal,’ ‘dehulled grinding the cake or chips which remain
solvent extracted soybean meal,’ ‘solvent after removal of most of the oil from soybeans
extracted soy grits,’ ‘solvent extracted soy by a mechanical extraction process. It must
flour.’ Practically all soybeans processed in contain not more than 7% crude fiber.
the United States are processed by the solvent
extraction system. (2) Continuous pressing: Soybean meal, solvent extracted
a continuous pressing process, at elevated The product obtained by grinding the flakes
temperatures, using expellers or screw which remain after removal of most of the
presses which utilize a worm shaft oil from soybeans by a solvent extraction
continuously rotating within a pressing process. It must contain not more than 7.0%
cylinder or cage to express the oil from crude fiber.
soybeans after they have been ground and
properly conditioned. The oil content of the Soybean mill feed Composed of soybean
resulting press cake is reduced to from 4% hulls and the offal from the tail of the mill
to 6% by this processing method. Although which results from the manufacture of soy
technically incorrect, the products resulting grits or flour. It must contain not less than
from this type of processing are often referred 13% crude protein and not more than 35%
to as ‘expeller,’ e.g. ‘expeller soybean meal.’ crude fiber.
56 Soybean lecithin The mixed phospholipids
product obtained from soy oil by the
Soybean mill run Composed of soybean
hulls and such bean meats that adhere to
degumming process, contains lecithin, the hulls which results from normal milling
cephalin and inositol phosphatides, together operations in the production of dehulled
with glycerides of soy oil and traces of soybean meal.
tocopherols, glucosides and pigments. It is
designated and sold according to Soybean processor An individual, or
conventional descriptive grades with respect a group of two or more individuals working
to consistency and bleaching. The dehydrated together as a company or firm, whose
emulsion of mixed phosphatides and soy oil primary business is the separation of the oil
is further processed to produce the and meal in soybeans. The activities of a
commercial grades which may be described processor may also include refining and/or
as follows: plastic or firm consistency; soft distribution of the oil as well as distribution
consistency; fluid; unbleached; bleached; or further production with soybean meal or
and double bleached. High quality soybean protein.
commercial lecithin contains 60% to 65%
phosphatides. Soybean protein product, chemically
modified A soybean product that has
Soybean meal Ground soybean cake, been processed to primarily modify the
ground soybean chips or ground soybean natural protein structure by utilizing acids,
flakes, sold according to its protein content alkalis or other chemicals without removing
and further described by its process of significant amounts of any nutrient constituent.
manufacture. Typical composition: protein
44.0% minimum, fat 0.5% minimum, fiber Soybean seed coats (hulls) Soybean
7% minimum, and moisture 12.0% maximum. hulls consist primarily of the outer covering
of the soybean.

59. Soyfoods Term for edible (primarily for Support area Tthe point below which
human consumption) soy-based products. prices have not dropped during declines in
These include traditional soyfoods such as the recent past. The support line, which can
tofu, soymilk, tempeh, soy sauce etc: soy be drawn horizontally or at an angle, tells
protein products produced after processing the trader that prices are not likely to go
(as described above) such as soy flour, soy below this support in the near future.
concentrates and isolated soy proteins: soy
oil products such as refined soy oil, Swap A forward contract, priced basis a
hydrogenated soybean oil and soybean negotiated index or indices, that does not
lecithin: and other edible buy-products such include physical delivery.
as soybean hulls and soy fiber. Also, ‘second
generation’ soyfoods, a term to describe Technical analysis The study of the
consumer oriented products that use a market to predict future price movements on
soyfood as a primary ingredient, such as the basis of past price movements.
tofu or soymilk-based nondairy frozen
desserts or tofu-stuffed ravioli. Toasting The term commonly but
erroneously applied to the processes (moist)
Soymilk A protein-rich, milk-like liquid of cooking soybean meal, flour or grits by
typically obtained from the soaking and atmospheric or pressure methods for the
grinding of whole soybeans with water; or, purpose of increasing the protein efficiency
hydrating whole, full-fat soy flour; cooking of these soy products or improving their
the resultant slurry, and filtering all or part functional properties and/or improving
of the soy pulp or fiber from the cooked physical texture.
liquid. Modern systems for soymilk
production may vary in technique. Soymilk Trimmed cargo Cargo is manually or
prepared in this manner can be used to mechanically moved to the edges of the
make tofu, drunk as is, spray-dried or holds for safe stowage to reduce any risk of
sweetened and flavored as a beverage.
Spinning A process for texturizing soy
shifting during the voyage. Ordinary vessels
require cargo to be trimmed. 57
protein isolate by forcing a concentrated Unsaturation A term descriptive of the
solution of protein through a small opening carbon-hydrogen make-up of a material
into a coagulating bath. such as fat or oil. The term refers specifically
to a shortage of hydrogen atoms in the oils
Spreads The price difference between structure. The less hydrogen, the greater the
futures months or between markets or related degree of unsaturation and the greater the
commodities. Spreads help reduce price reactivity with oxygen. Unsaturation in a fat
risks. Most often used to describe a futures or oil means easier formation of peroxides,
position in which the trader is long one easier development of rancidity and more
contract month of a given commodity and tendency to polymerize. Highly unsaturated
short another month of the same commodity. fats are usually oils, and solid fats have
lower unsaturation.
Stevedoring The job involving the stowing
and trimming of the vessel. Most vessel Volatility A measure of the stability of a
charters are FIOST, which means that the price series; the speed at which price
charterers arrange stevedoring. Since many changes.
elevators use in-house stevedores, it is
cheaper for the importer (charterer) to buy
grain under a contract which includes stowing
and trimming.

61. Useful
Resources

63. Commodities Futures Trading
Soy Related Organizations Commission (CFTC)
2033 K Street, NW
Federal Grain Inspection Service (FGIS), Washington, DC 20581
GIPSA, USDA USA
Stop 3601 Tel: 202-254-6387
1400 Independence Avenue, SW Fax: 202-254-3061
Washington, DC 20250-3601
Tel: 202-720-5091 National Futures Association (NFA)
Fax: 202-205-9237 200 West Madison Street
Website: www.usda.gov/gipsa/index.html Suite 1600
Chicago, IL 60606-3447
North American Export Grain USA
Association (NAEGA) Tel: 312-781-1300
1250 I Street, NW Fax: 312-781-1467
Suite 1003 Website: www.nfa.futures.org
Washington, DC 20005
Tel: 202-682-4030
Fax: 202-682-4033 Major US Soy Exporters
Website: www.naega.org
Ag Processing Inc
The Grain and Feed Trade Association 12700 W. Dodge Rd.
(GAFTA) P.O. Box 2047
GAFTA House Omaha, NE 68103-2047
6 Chapel Place Tel: 402-496-7809
Rivington Street, London EC2A 3SH Email: info@agp.com
Tel: 44-20-7814 9666 Internet: www.agp.com
Fax: 44-20-7814 8383
Website: www.gafta.com Archer Daniels Midland Company
P.O. Box 1470
61
National Oilseed Processors Association Decatur, IL 62525
1300 L Street, NW Tel: 217-424-5200
Suite 1020 Email: info@admworld.com
Washington, DC 20005-4168 Internet: www.admworld.com
Tel: 202-842-0463 Bunge North America Inc
Fax: 202-842-9126 P.O. Box 28500
Website: www.nopa.org 11720 Borman Drive
St. Louis, MO 63146
Federation of Oil, Seeds and Fats Tel: 314-292-2000
Association (FOSFA) International Fax: 314-292-2110
20 St Dunstan’s Hill Internet: www.bungenorthamerica.com/home.htm
London EC3R 8HL
United Kingdom Cargill, Inc
Tel: 44-71-283 5511/2707 P.O. Box 9300
Fax: 44-71-623-1310 Minneapolis, MN 55440-9300
Tel: 952-742-7575
Chicago Board of Trade (CBOT) Internet: www.cargill.com
141 W Jackson Blvd
CGB Enterprises, Inc
Chicago, IL 60604-2994
1-800-669-0085 ext 229
Tel: 312-341-7955
Email: barrettb@cgb.com
Fax: 312-341-3027
Internet: www.cgb.com
Website: www.cbot.com

64. Louis Dreyfus Corporation The Scoular Company
20 Westport Road 250 Marquette Ave
Wilton, Connecticut 06897-0810 Suite 1050
Tel: 203-761-2285 Minneapolis, MN 55401
Fax: 203 761-2375 Tel: 612-8513756
Email: footea@louisdreyfus.com Internet: www.scoular.com
Internet: www.louisdreyfus.com
For more information, contact
Owensboro Grain
asaspore@pacific.net.sg or visit
719 E. Second St., P.O. Box 1787 http://www.asasea.com/links.html
Owensboro, KY 42302-1787
Phone: 270-926-2032
Fax: 270-686-6509
Email: ogcogeo@aol.com
62 Internet: www.owensborograin.com
Useful Web Linkss
www.agbios.com Agbios (Biotechnology)
www.aocs.org American Oil Chemists’ Society (AOCS)
www.soygrowers.org American Soybean Association
www.bio.org Biotechnology Industry Organization
www.uscafta.org CAFTA-DR Information Website
www.cbot.com Chicago Board of Trade
www.feedstuffs.com Feedstuffs
www.usda.gov/gipsa Grain Inspection, Packers and Stockyards Administration (GIPSA)
www.ilcfar.org Illinois Council on Food Agricultural Research (C-FAR)
www.iasc-oils.org International Association of Seed Crushers
www.biodiesel.org National Biodiesel Board
www.niop.org National Institute of Oilseed Products
www.nopa.org National Oilseed Processors Association
www.soyink.com National Soy Ink Information Center
www.talksoy.com Soy and Health
www.soyatech.com Soya Oilseed Bluebook
www.soyatrade.com Soyatrade
www.soymeal.org Soybean Meal Information Center
www.soyfoods.org Soyfoods Association of North America
www.soystats.com Soystats
www.stratsoy.uiuc.edu Stratsoy
www.iseo.org The Institute of Shortening and Edible Oils
www.unitedsoybean.org United Soybean Board
www.fas.usda.gov US FAS Trade Offices (worldwide)

65. ASA INTERNATIONAL MARKETING
12125 Woodcrest Executive Drive
Suite 140 St. Louis
MO 63141-5829, USA
Tel: (1314) 985-0988 Toll Free: 800-408-4993
Fax: (1314) 754-1351
ASA INTERNATIONAL THAILAND ASIA SUBCONTINENT
MARKETING OFFICES Mr. Opas Supamornpun, Mr. Virgil Miedema,
Consultant Regional Director
SOUTHEAST ASIA 59/43 Baan Klang Muang 149 Jor Bagh
Mr. John A Lindblom, Ladprao 71 Road New Delhi – 110 003
Regional Director Ladprao, Bangkok 10230 INDIA
541 Orchard Road THAILAND Phone: (91 11) 2465-1659
#11-03 Liat Towers Phone: (662) 5395373, Fax: (91 11) 2465-1526
REPUBLIC OF SINGAPORE 5395332 Email: asaasc@vsnl.net
238881 Fax: (662) 539 5256 Website: www.asaasc.com
Phone: (65) 6737-6233 Email: asathai@loxinfo.co.th
Fax: (65) 6737-5849 JAPAN
Email: asaspore@pacific.net.sg VIETNAM Mr. Takehiko Nishio,
Website: www.asasea.com Mr. Tran Trong Chien, Country Director
Consultant 4th Fl. KY Tameike Bldg.
INDONESIA
Mr. Ali Basry, Consultant
13/F Hanoi Towers
49 Hai Ba Trung Street
1-6-19 Akasaka
Minato-ku, Tokyo 107-0052
63
Wisma Mitra Sunter, #402 Hanoi, VIETNAM JAPAN
Blok C-2 Boulevar Mitra Sunter Phone: (844) 934 3979 Phone: (81 3) 5563-1414
Jl Yos Sudarso Kav. 89 Fax: (844) 934 3966 Fax: (81 3) 5563-1415
Jakarta 14350 Email: asa-usgc@fpt.vn Email: asatokyo@gol.com
INDONESIA Website: www.asajapan.org
Phone: (6221) 651 4752 PEOPLE’S REPUBLIC
Fax: (6221) 651 4753 OF CHINA KOREA
Email: asagrain@indosat.net.id Mr. Phillip Laney, Mr. Say Young Jo,
Country Director Country Director
PHILIPPINES Beijing Rm 301, 3rd Floor, Leema
Mr. Teodoro M Cortes, Suite 902 China World Twr 2 Building
Consultant No. 1 Jianguomenwai Avenue 146-1 Susong-dong,
1408-B, Robinsons-Equitable BEIJING 100004, PRC Chongro-ku
Tower Phone: (8610) 6505-1830 Seoul 110-755
#4 ADB Avenue cor. Poveda, Fax: (8610) 6505-2201 KOREA
Ortigas Ctr. 1605 Pasig City, Email: beisoya@asachina.org Phone: (822) 738-7056
Metro Manila Website: www.asachina.org Fax: (822) 736-5501
PHILIPPINES Email: soyakor@kornet.net
Phone: (632) 637 5387 Shanghai Website: www.asa.or.kr
Fax: (632) 637 5388 Rm. 1802, SITC
Email: asatcj@mozcom.com No. 2201 Yanan Xi Lu
SHANGHAI, 200336, PRC
Phone: (8621) 6219-1661
Fax: (8621) 6219-5590
Email: shasoya@asachina.org

66. TAIWAN WEST EUROPE & OTHER TURKEY & MIDDLE EAST
Mr. Anthony Thang, Country AFRICAN COUNTRIES Mr. Christopher Andrew, Regional
Director Director
6 Fl., No. 27, Chang An East MEXICO BJK Plaza, Suleyman Seba Cad.
Road, Section 1, Taipei 104, Mr. Mark W. Andersen, No. 92
TAIWAN Regional Director A-Blok, Kat-8 No. 85/86
Phone: (8862) 2560-2927 Guadalajara World Trade Center 80680 Besiktas, Istanbul, TURKEY
Fax: (8862) 2568-3869 Av. Mariano Otero No. 1249 Phone: (90 212) 258 2800
Email: asatwn@ms75.hinet.net Torre Pacifico Int. B171M Fax: (90 212) 236 2620
Website: www.soybean.org.tw Col. Rinconada del Bosque Email: asatr@superonline.com
Guadalajara, Jalisco
MEXICO C.P. 44530
Phone: (52 33) 5000 0990
Fax: (52 33) 5000 0999
Email: asamex@soyamex.com.mx
64 Website: www.soyamex.com.mx