How to Invest in Soybean Oil
Soybean oil is extracted from seeds of soybeans, and is used primarily for cooking purposes. Soybean oil can also be used as a base for inks and paints. Soybean oils are sold as vegetable oil around the globe and also are used in a number of different processed foods.
Interest in soybean oil as an investable asset is not nearly as significant as desire for other agricultural commodities, though investors seeking exposure to have multiple options available to them.
Ways to Invest in Soybean Oil
There are 2 ways to invest in Soybean Oil: ETFs and Futures. Click on the tabs below to learn more about each alternative.
What are Soybean Oil ETFs?
There are no pure play soybean oil exchange-traded products currently available, but this commodity is included in certain broad-based agricultural commodity ETPs. The E-TRACS CMCI Food Total Reutrn ETN (FUD) allocates about 7% of the underlying holding to soybean meal. Because other food commodities make up the vast majority of holdings, changes in soybean oil prices will have only a minor impact on FUD\’s price.
What are Soybean Oil Futures?
Soybean oil futures are traded on the Chicago Board of Trade under the symbol BO (under the symbol ZL for CME Globex trading). Soybean oil futures contracts represent 60,000 pounds, or approximately 27 metric tons. Contract months for soybean meal futures are January (F), March (H), May (K), July (N), August (Q), September (U), October (V) and December (Z). The last trading day is the business day prior to the 15th calendar day of the contract month.
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