Trading soybeans CFDs
Among the most frequently traded commodities in the global markets is soybeans, a staple food which has high demand because of its various use such as soybean oil, soymilk etc. Traders like agricultural commodities such as soybeans for various reasons such as it helps in portfolio diversification. It acts as a hedge against inflation etc.
Soybeans are widely grown by farmers for its various commercial uses such as for making vegetable use, animal feed and other soy products for human consumption. The commodity market is a very volatile market and is affected by various factors such as weather, global demand that paves the way for many opportunities for commodities trader.
As most of the commodities prices are expressed in US dollar, soybean’s prices are also expressed in us dollar. 1 CFD contract on soybean comprises 100 bushels.
Instrument – Soybeans
Currency – USD
Margin – 3.00%
Spread – $1.00 over market
Trading hours – 1:00 – 13:44 & 14:30 -19:14
What influences the price of Soybeans?
Mainly the change in demand for soybeans in the global market supports the fluctuating prices of soybeans. The demand for soybean has been rising for decades, with the vast majority of the increasing demand coming from emerging markets.
A farmer needs a favourable condition to grow crops as these crops have been developed in places where the weather is more favourable to them. Any impact of climate change is very likely to contribute to prices as the yields will be impacted by any shift in weather.
Global warming is one of the biggest threats to any crop, including soybeans. If global warming continues to grow then the world’s supply for food will get affected, and we will not be able to fulfil our food demand.
Hedge against US Dollar and Inflation
Investing in commodities, including soybean, is a good way to bet on a week US dollar and inflation that is high. In the last few decades, monetary policies that have kept the US dollar poor have been affirmed by the US Federal Reserves Banks. US policymakers want this weakness to encourage consumer spending and borrowing and to strengthen US exports. A continuation of those policies will help soybeans rates and can spur inflation.
Advantages of trading Soybean’s CFDs with Capital Street FX
As most of the traders speculate on the price movement and won’t need soybeans in physical form. This is why the most useful instrument for traders is the contract for difference (CFDs). It allows traders to buy or sell without owning the underlying instrument. It also gives freedom to trade a particular market from either side, i.e., and traders can go long or short according to their strategy. CFD is a very cost-efficient instrument. The brokerage on CFDs is very low.
Why trade Soybeans CFD with CAPITAL STREET
- BROAD RANGE OF MARKETS- Access to the popular commodities markets, including energy, metal, and agricultural products.
- CSFX offers you our stat of the art platforms and range of trading tools
- Trade using Margin- Get greater exposure to the marketplace with a small deposit and spread your capital using margin.
- Automate your trade facilities and direct access to the market
Safety of funds