How To Turtle Trade Soybean Futures?

Commodities market is huge and broad. There are dozens of commodities that you can trade. Agricultural commodities are a subclass of the broader class. Agriculture market experiences huge price swings that are seasonal in nature. This high volatility in the agricultural commodities make them highly popular investment for day traders. Soybeans also known as Magic Beans is an important agricultural commodity.Soybeans are in increasing demand due to the growing number of applications. These applications include trendy food products to fuel additives to feedstock.

Soybeans are a vital crop for the global economy. Soybeans are used for the poultry feedstock to the creation of the vegetable oil. Now, you can trade soybeans themselves as well as soybean oil and soybean meal. Most soybeans are used for extracting soybean oil which is used as a vegetable oil and soybean meal which is used as a agricultural feedstock.

United States dominates the global soybean production with almost 50% of the market share. Brazil comes second with 20% accounting for the global soybean production. You can trade soybean futures contract at CBOT.

Now, soybean oil is increasingly being used in alternative energy sources technology like biodiesel. An increasing number of cars in United States, Europe and other parts of the world are being outfitted with engines that allow them to convert from regular diesel to soybean oil during operation. These cars are known as Frybrids and are becoming popular because of their better mileage and low environmental impact.

What this means is the demand for soybean oil is going to increase in this decade as the world starts switching from fossil fuel to bio fuel. As the oil prices skyrocket in this decade, biofuel will become more popular. So you can position yourself for profiting from this coming boom by learning how to trade soybean oil futures contract. These contracts get traded on CBOT.

In this decade, commodities market is going to experience an unprecedented boom that might last for many years. The main reason will be of course rising global population and its desire for better food and better living. CBOT is the best exchange to trade commodities and precious metals contracts. You can day trade many commodity futures at CBOT.

You can also trade soybean meal futures at CBOT. Soybean mean is the leftover after the extraction of soybean oil and is used as a feedstock in cattle, hogs,and poultry industry!