Soybean is one of the most popular and the most important beans all over the world, first made known in Europe. This bean is known to provide oils and a great source of protein around the world and because of its many uses Soybeans has become a staple in countries in some countries in Eastern Asia. Technological advancement has diversified the use of this wonder bean, now it is commonly found in vegetable oil, animal feeds and it is also incorporated in Food.
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Soybeans in the MarketPrice Drivers for Soybean
In 2008, the prices of Soybeans have nearly doubled, because of usefulness of soybean the demand for this commodity. Last year, there has been a rise in demand for ethanol and rising corn prices and caused farmers to plant more corn into their fields rather than Soybean.
And by the rules of supply and demand, fewer bushels of Soybean would mean higher soybean prices.
Here are a few more factors that affect the Price of Soybean in the market
Soybean Rust – this is a disease that attacks soybeans and other plants that could cause devastation in the production of soybeans.
Biodiesel – Soybeans go through a rigorous process and go through a number of machines in order to extract proteins and oils. The price of Soybean heavily relies on the price of biodiesel because a rise in the price of bio diesel would mean a higher cost of production.