# Soybeans > Soybeans are crushed into meal for feed and oil for food and biofuels. Learn soybean futures, Brazil vs US supply, China's demand, the crush and key price drivers. Source: https://learn.tradelabsai.com/commodities/soybeans/ Track: Commodities · Level: Intermediate · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "Soybeans", https://learn.tradelabsai.com/commodities/soybeans/ Soybeans are the world's most important oilseed. When crushed, a bushel of soybeans produces soybean meal, a high protein animal feed, and soybean oil, used in cooking, food products and increasingly biofuels. Brazil and the United States produce most of the world's soybeans, and China is by far the largest importer, buying about 60% of globally traded soybeans to feed its huge pig and poultry industries. That makes soybean prices sensitive to South American weather, Chinese demand and trade politics. ## The soybean complex | Contract | Symbol | Size | Quote | |---|---|---|---| | Soybeans | ZS | 5,000 bushels | Cents per bushel; 1/4 cent tick = $12.50 | | Soybean meal | ZM | 100 short tons | Dollars per short ton | | Soybean oil | ZL | 60,000 pounds | Cents per pound | The difference between the value of meal and oil and the cost of beans is the crush margin. See [Crush Spreads](https://learn.tradelabsai.com/futures/crush-spreads/). ## Supply: US and Brazil | Country | Planting | Harvest | Notes | |---|---|---|---| | United States | May to June | September to November | Midwest; exports peak in autumn | | Brazil | September to December | January to April | The largest producer and exporter | | Argentina | November to January | March to June | Leading exporter of meal and oil | Brazil overtook the US as the largest producer and exporter in the late 2010s, so its weather and harvest now strongly influence global prices. The Brazilian real also matters: a weaker real encourages Brazilian farmers to sell, adding supply. See [Currency Pairs: Majors, Minors and Exotics](https://learn.tradelabsai.com/forex/currency-pairs/). ## China and trade policy **Example: The 2018 US China trade war** In July 2018, China imposed a 25% tariff on US soybeans in retaliation for US tariffs. Chinese buyers shifted purchases to Brazil, and US soybean futures fell from about $10.50 a bushel in late May to around $8.20 by mid July. Brazilian soybean premiums rose. The US government later paid billions of dollars in aid to farmers. A 2020 trade deal included Chinese purchase commitments, which only partly materialised. The episode shows how policy can override normal supply and demand. See [Macro Trading](https://learn.tradelabsai.com/strategies/macro-trading/). ## What moves soybean prices | Driver | Effect | |---|---| | South American weather | Drought in Brazil or Argentina tightens supply | | US weather (July to August) | Pod setting and filling are key | | Chinese demand | Hog herd size, feed demand, state purchases | | Trade policy | Tariffs and purchase agreements | | Biofuel policy | Renewable diesel demand lifts soybean oil | | Meal demand | Livestock feeding worldwide | | Currency moves | The Brazilian real and US dollar | | Planted acres | Competition with corn for land. See [Corn](https://learn.tradelabsai.com/commodities/corn/) | ## Oil vs meal In recent years, US renewable diesel capacity expanded rapidly, boosting demand for soybean oil and raising its share of crush value. At the same time, more crushing for oil produced more meal, which pushed meal prices lower relative to oil. Traders follow these shifts through the oil share of the crush. See [Crush Spreads](https://learn.tradelabsai.com/futures/crush-spreads/). ## Seasonality US soybean prices often carry weather premiums during July and August, then face harvest pressure in autumn. Brazilian harvests from February to April add supply in the Northern Hemisphere spring. See [Seasonality in Commodities](https://learn.tradelabsai.com/commodities/seasonality-in-commodities/). ## Trading soybeans - **Outright futures and options.** - **Crush spreads:** beans against meal and oil. - **Soybean to corn ratio** for acreage battles. - **Calendar spreads:** July versus November (old crop versus new crop). See [Calendar Spreads in Futures](https://learn.tradelabsai.com/futures/calendar-spreads-in-futures/). ## Risks - **Weather in two hemispheres.** - **Political and trade shocks.** - **Disease in livestock** affecting meal demand, such as African swine fever in China in 2018 to 2019. ## Frequently asked questions ### What are soybeans used for? They are crushed into soybean meal for animal feed and soybean oil for food and biofuels, and also used directly in foods. ### Who buys the most soybeans? China, which imports about 60% of globally traded soybeans, mainly for animal feed. ### What moves soybean prices? Weather in the US and South America, Chinese demand, trade policy, biofuel demand for soybean oil and currency moves. Next, learn about the world's favourite drink in [Coffee](https://learn.tradelabsai.com/commodities/coffee/). ## Continue learning - Next lesson: [Coffee](https://learn.tradelabsai.com/commodities/coffee/) - Previous lesson: [Wheat](https://learn.tradelabsai.com/commodities/wheat/) - Related: [Wheat](https://learn.tradelabsai.com/commodities/wheat/): Wheat is a global staple with several classes and many exporting countries. Learn Chicago and Kansas City wheat futures, the Black Sea's role and price drivers. - Related: [Crush Spreads](https://learn.tradelabsai.com/futures/crush-spreads/): The soybean crush spread measures the margin between soybeans and the meal and oil made from them. Learn the calculation, board crush, reverse crush and drivers. - Related: [Corn](https://learn.tradelabsai.com/commodities/corn/): Corn is the largest US crop, used for feed, ethanol and exports. Learn corn futures, the crop calendar, USDA reports, key demand sources and what moves prices. - Related: [Agricultural Markets](https://learn.tradelabsai.com/commodities/agricultural-markets/): Agricultural markets cover grains, oilseeds, softs and livestock. Learn the main contracts, the USDA reports that move them, weather, seasonality and trade policy. - Related: [Seasonality in Commodities](https://learn.tradelabsai.com/commodities/seasonality-in-commodities/): Many commodities follow seasonal patterns tied to weather, harvests and demand. Learn key patterns in grains, energy and softs, how to measure them and their limits. - Related: [Currency Pairs: Majors, Minors and Exotics](https://learn.tradelabsai.com/forex/currency-pairs/): Forex trades currencies in pairs, like EUR/USD. Learn base and quote currencies, how to read a quote, majors, crosses and exotics, and what moves each pair.