Soybean Oil Mar '21 (ZLH21)
|Tick Size||0.01 points ($6.00 per contract)|
|Daily Limit||2.5 cents per pound ($1,500 per contract) Expanded limit 4.0 cents|
|Contract Size||60,000 pounds|
|Trading Months||Jan, Mar, May, Jul, Aug, Sep, Oct, Dec (F, H, K, N, Q, U, V, Z)|
|Trading Hours||7:00p.m. - 7:45a.m. and 8:30a.m. - 1:20p.m. (Settles 1:15p.m.) (Sun-Fri) CST|
|Value of One Futures Unit||$600|
|Value of One Options Unit||$600|
|Last Trading Day||The business day prior to the 15th calendar day of the contract month|
Soybean oil is the natural oil extracted from whole soybeans. Typically, about 19% of a soybean's weight can be extracted as crude soybean oil. The oil content of U.S. soybeans correlates directly with the temperatures and amount of sunshine during the soybean pod-filling stages. Edible products produced with soybean oil include cooking and salad oils, shortening, and margarine. Soybean oil is the most widely used cooking oil in the U.S. It accounts for 80% of margarine production and for more than 75% of total U.S. consumer vegetable fat and oil consumption. Soy oil is cholesterol-free and high in polyunsaturated fat. Soy oil is also used to produce inedible products such as paints, varnish, resins, and plastics. Of the edible vegetable oils, soy oil is the world's largest at about 32%, followed by palm oil and rapeseed oil. Soybean oil futures and options are traded at the CME Group.
Prices - CME soybean oil futures prices (Barchart.com electronic symbol ZL) on the nearest-futures chart started 2019 at about 27.55 cents per pound, rose early in the year, but then fell to a 4-year low before rising to finally close the year up +25.2% at 34.49 cents per pound. However, the price was falling into 2020. Regarding cash prices for the year 2019/20 (through December 2019), the average monthly price of crude domestic soybean oil (in tank cars) in Decatur (F.O.B.) rose +9.7% yr/yr to 31.01 cents per pound.
Supply - World production of soybean oil in 2019/20 is expected to rise +1.8% yr/yr to a new record high of 56.863 million metric tons. China will account for 26.8% of world soybean oil production, while the U.S. will account for 19.5%, Argentina for 15.3%, and Brazil for 14.8%. U.S. production of soybean oil in 2019/20 is expected to rise +0.9% yr/yr to 24.410 billion pounds.
Demand - World consumption of soybean oil in 2019/20 is expected to rise +2.8% yr/yr to a new record high of 56.866 million metric tons. China will account for 28.7% of world consumption, while the U.S. will account for 18.7%, Brazil for 12.9%, and India for 8.7%. U.S. consumption of soybean oil in 2019/20 is expected to rise +2.7% yr/yr to 23.499 billion pounds.
Trade - World exports of soybean oil in 2019/20 are expected to rise +7.2% yr/yr to 11.838 million metric tons, a record high. U.S. exports of soybean oil in 2019/20 are expected to fall -12.5% yr/yr to 771,000 pounds, well below the 2009/10 record high of 1.524 million pounds.
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