SOYBEAN MEAL

HANDBOOK

By Shreyas Nagu and Shraddha Garg

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Table of Contents

Table of Contents 2

Introduction 4

History 5
Soyabean, in a bushel 7

Soybean Meal Trends Globally 8

World Consumption Trend 8
Soybean Meal Consumption In US 8
Soybean Meal Consumption in Argentina 9
Soybean Meal Consumption in Brazil 9
Soybean Meal Consumption in China 10
World Production Trend 11
Soybean Meal Production in Argentina 12
Soybean Meal Production in Brazil 12
Soybean Meal Production in US 13
Soybean Meal Production in China 13

Exporting Nations and their trends 14

Major Exporters 14
Country-wise Exporters Trends 15
Argentina 15
Brazil 15
United States 16
Paraguay 16
Monthly Exports 17
Argentina 17
US 17
Russia 17
Monthly Export by destinations 18
Argentina 18
Top Monthly Export by destinations in Argentina 19
Brazil 19
Top Monthly Export by destinations in Brazil 20
Russia 20
Top Monthly Export by destinations in Russia 22
Export Seasonality 23
Argentina 23
Brazil 23

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 Russia 24

Importing Nations and their trends 25

Country-wise Importers Trends 26
EU 26
Indonesia 26
Vietnam 26
Philippines 27

Futures Contracts and Specifications 28

Price Trends 28

NOPA Crush Report 31

Sample Crush Report MAY 2022 31

Crush Margin 33
Mechanics and Pricing 33
Crush Calculation 33

US Major Crushers Locations 33

Important Data Resources concerning soymeal (Links Attached) 35

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Introduction
Soybean has been grown as a
commercial crop mainly in
temperate ecologies for
thousands of years. Initially, it
was cultivated in northern Asia
and in more recent decades in
North America and in countries of
the Southern Cone of Latin
America. During the past decades, crop scientists and soybean growers have made
concerted efforts, leading to an increase in the world's production of soybean. The
United States grows soybean over the largest area and holds a share of about 32%
of the world’s soybean production, followed by Brazil (31%), Argentina (19%), China
(6%), and India (4%).On an absolute basis, soybean is the fourth most important
grain crop worldwide, after wheat, maize, and rice.

The season of harvesting of soybeans depends on the time of sowing and the
variety grown such as short duration or long duration. Soybean harvested area is
spread across a wide range of environments, ranging from temperate regions such
as the North American Great Plains and South American Pampas to tropical
environments such as the Brazilian Cerrados

Soybean meal is used in food and animal feeds, principally as a protein supplement,
but also as a source of metabolizable energy. Typically 1 bushel (i.e. 60 lbs. or 27.2
kg) of soybeans yields 48 lbs. (21.8 kg) of soybean meal. Some, but not all, soybean
meal is produced from the residue left after oil extraction. Removal of the oil, which
is used mostly in food, but also for industrial oils, soaps and biodiesel, involves
crushing and either pressing or solvent extraction. Some, but not all, soybean meal
contains ground soybean hulls. Soybean meal is heat-treated during production, to
denature the trypsin inhibitors of soybeans, which would otherwise interfere with
protein digestion.

It is not only a source of high-quality edible oil for humans but also a high-quality
vegetable protein in animal feed worldwide. Its universal acceptability in animal feed
has been due to favorable attributes such as relatively high protein content and
suitable amino acid profile except for methionine, minimal variation in nutrient
content, ready availability year-round, and relative freedom from intractable
anti-nutritive factors if properly processed.

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History
Soybeans were first introduced in the U.S. in the late 1770s. Early acceptance of
the soybean crop and the use of soybean meal were slow. In the 1920-30s, the
crop was promoted and with the acceptance of soybean meal as a protein
ingredient by the livestock producer and feed industry in the late 1930s; the
growth of soybean crop and the use of soybean meal rapidly expanded.

Soybean meal is today the number one supplier of digestible amino acids for
poultry and swine, and also an important supplier for metabolizable and net
energy. This claim is supported by years of research demonstrating the benefits
of soybean in livestock and poultry operations.

The global market for soy has been rising steadily for the past few years and there
are a few reasons for traders to have a positive outlook on the soybean market in
the years to come.Transparency Market Research predicts that the value of the
global soybean market will grow from $146.23 billion to $215.746 billion between
2017 and 2025.As developing economies such as China grow wealthier, more and
more people will likely increase their meat consumption and turn to healthier food.
The soy market stands to gain from both of these trends due to the use of soybeans
as livestock feed as well as their associated health benefits.

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Global Usage
Soybeans yield 18.6% of oil and 78.7% of soybean meal with the rest being waste
(FEFAC, 2007). The oil can be extracted either mechanically or by solvent means.
There are two main types of soybean meal. The dehulled soybean meal and
soybean meal, depending on whether the testa (seed coat) is removed or not. Both
products vary in their nutrient composition, but are quite high in protein content with
a good amino acid balance except methionine, low in fiber, high in energy, and have
little or no anti-nutritive factors when properly processed.

● Use in Animal Feed

Globally, about 98 percent of soybean meal is used as animal feed. Of the US

soybean production magnitude from 2010 through 2012, about 44 per cent
was exported as soybeans, and 53 per cent was crushed in the US. Of the
crushed tonnage, 19 per cent was recovered as soybean oil and the
remainder was recovered as soybean meal. Of the total US soybean tonnage
produced, about 35 per cent was fed to US livestock and poultry as soybean
meal. Most of the remaining soybean meal produced in the US was exported.
It has been estimated that, of soy meal fed to animals in the US, 48 per cent
is fed to poultry, 26 per cent to swine, 12 per cent to beef cattle, 9 per cent to
dairy cattle, 3 percent is used in fish feed and about 2 per cent in pet food.
Although this implies that the tonnage of soybean meal fed to other species is
relatively minor, such use is not unimportant. For example, for rapidly growing
lambs on low-protein feeds, soybean meal can be an important supplement to
ensure adequate protein intake, and partly because of its palatability, soybean
meal is often recommended for use in starter rations when creep feeding
lambs.

● Use as Human food

Globally, about 2 percent of soybean meal is used for soy flour and other
products for human consumption. Soy flour is used to make some soy milk
and textured vegetable protein products and is marketed as full-fat, low-fat,
defatted, and lecithinated types. Soybeans contain more protein than lean
meat. Two pounds of soybeans supply the protein equivalent of 5 pounds of
boneless beef, 15 quarts of milk, 6 dozen eggs or 4 pounds of cheese.
Soybean protein is the only complete plant protein; that is, it contains all of the
amino acids essential for human health.

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Soyabean, in a bushel
After harvest, soybeans are either stored in a grain bin or sold to a processing plant,
like Cargill in North Carolina. These processors are able to separate the soybean
meal from the oil. When processed, a 60-pound bushel will yield about 11 pounds of
crude soybean oil and 47 pounds of soybean meal.

Soybean futures are fully electronic, exchange-traded contracts on the Chicago

Board of Trade (CBOT). Soybeans have a seemingly limitless range of uses. They
serve as a central ingredient in many food products and are increasingly being seen
as a renewable resource with many industrial applications. Soybean futures give
traders a highly liquid tool to manage risk and diversify their portfolios with this
popular agricultural commodity.

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Soybean Meal Trends Globally
World Consumption Trend

Soybean Meal Consumption In US

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Soybean Meal Consumption in Argentina

Soybean Meal Consumption in Brazil

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Soybean Meal Consumption in China

10
World Production Trend

11
Soybean Meal Production in Argentina

Soybean Meal Production in Brazil

12
Soybean Meal Production in US

Soybean Meal Production in China

13
Exporting Nations and their trends

Major Exporters

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Country-wise Exporters Trends

Argentina

Brazil

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United States

Paraguay

16
Monthly Exports

Argentina

US

17
Russia

Monthly Export by destinations

Argentina

18
Top Monthly Export by destinations in Argentina

19
Brazil

Top Monthly Export by destinations in Brazil

20
Russia

21
Top Monthly Export by destinations in Russia

22
Export Seasonality

Argentina

Brazil

23
Russia

24
Importing Nations and their trends

25
Country-wise Importers Trends

EU

Indonesia

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Vietnam

Philippiness

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 Futures Contracts and Specifications
CONTRACT UNIT 100 short tons (~ 91 metric tons)

PRICE QUOTATION U.S. dollars and cents per short ton

TRADING HOURS CME Globex:

Sunday – Friday, 7:00 p.m. – 7:45 a.m. CT and
Monday – Friday, 8:30 a.m. – 1:20 p.m. CT

TAS: Sunday - Friday 7:00 p.m. - 7:45 a.m. and ?

Monday - Friday 8:30 a.m. - 1:15 p.m. CT
CME ClearPort:
Sunday 5:00 p.m. - Friday 5:45 p.m. CT with no reporting Monday - Thursday
from 5:45 p.m. – 6:00 p.m. CT

MINIMUM PRICE FLUCTUATION 0.10 per short ton = $10.00

TAS: Zero or +/- 4 ticks in the minimum tick increment of the outright

PRODUCT CODE CME Globex: ZMCME ClearPort: 06 Clearing: 06TAS: ZMT

LISTED CONTRACTS 15 monthly contracts of Jan, Mar, May, Aug, Sep and 12 monthly contracts of
Jul, Oct, Dec listed annually after the termination of trading in the December
contract of the current year.

SETTLEMENT METHOD Deliverable

TERMINATION OF TRADING Trading terminates on the business day prior to the 15th day of the contract
month.

TAM OR TAS RULES Trading at Settlement (TAS) is subject to the requirements of Rule 524.A. TAS
trades off a "Base Price" of zero (equal to the daily settlement price) to create a
differential versus the daily settlement price in the underlying futures contract
month. The TAS clearing price equals the daily settlement price of the underlying
futures contract month plus or minus the TAS transaction price.

SETTLEMENT PROCEDURES Soybean Meal Settlement Procedures

POSITION LIMITS CBOT Position Limits

EXCHANGE RULEBOOK CBOT 13

BLOCK MINIMUM Block Minimum Thresholds

PRICE LIMIT OR CIRCUIT Price Limits

VENDOR CODES Quote Vendor Symbols Listing

LAST DELIVERY DATE Second business day following the last trading day of the delivery month.

GRADE AND QUALITY Through December 2018, 48% Protein Soybean Meal, meeting the requirements
listed in the CBOT Rules and Regulations. As of January 2019, 47.5% Protein
Soybean Meal, meeting the requirements listed in the CBOT Rules and
Regulations.

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Price Trends

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Soybean Meal Storage
Soybean meal is difficult to handle because of poor flow ability and bridging
characteristics. Soybean meal tends to settle or consolidate over time. This
phenomenon occurs in most granular materials and becomes more severe with
increased moisture, time and small particle size. Because of this, bulk soybean meal
is best stored in flat storage buildings instead of vertical silos. Standard conveyors
can be used for loading into the building and front-end loadings tractor can be used
in combination with standard conveyors for reclamation

Soybean meal has an average density of 0.6 n/m3, substantially less than regular
grain products which are around 0.75Tn/m3. It also has higher moisture and oil
content and is less free-flowing than most grain products, requiring higher angles of
conveyors and chutes to optimize flow. Free-flowing grains will usually travel easily
at an angle of 40° to 45°, whereas soybean meal needs a slope of minimum 55° to
ensure flow. The product’s poor flow, its ‘stickiness’ and tendency for compaction
have a number of consequences for the layout and design of the handling system;
for example, measures need to be taken to prevent the build-up of product at
transfer points or in gaps along the process. Soybean meal that is left sitting for a
number of hours is highly susceptible to problems like salmonella, he describes how
Buttimer eliminate ‘dead-zones’, for example by inserting curved plates at the end of
conveyors to prevent any build-up of product, and by carefully designing transfer
points in the system to ensure efficient throughput, without areas where it can
become lodged and collect.

Factors affecting soybean storage

The three major factors affecting the storage of soybean and soybean meal are
moisture content, temperature, and storage duration. The general condition of
the product and amount of foreign materials also affect their storage.

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NOPA Crush Report
The National Oilseed Processors Association (NOPA) Crush Report contains data
from the 12 member companies that account for approximately 95% of the US
soybean crush.

Thomson Reuters is the sole distributor of the National Oilseed Processors

Association (NOPA) monthly Crush Report. The report includes information on:

● Soybean crush and oils stocks for the current month, previous month and
comparable month a year ago for six regions, including (1) Illinois; (2)
Indiana, Kentucky, Ohio and Michigan; (3) Southeast U.S.; (4) Southwest
U.S.; (5) Iowa; and (6) Minnesota, North Dakota, South Dakota and
Montana
● Total soybean crush and oil stocks for the current month, previous month
and comparable month a year ago
● Soybean meal: tons produced, yield, and exports for the current month,
previous month and comparable month a year ago
● Soybean oil: pounds produced and yield for the current month, previous
month and comparable month a year ago.

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Sample Crush Report MAY 2022

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Crush Margin
In the soybean industry, the crush refers to both the physical process of converting
soybeans into oil and meal and the difference in the value of the soybeans to that of
those products. Soybean yield 18.6% Soybean oil and 78.7% of Soybean
meal.Soybeans yield 18.6% of oil and 78.7% of soybean meal

The Board Crush is a facilitated spread, considered a gauge of the potential profit
margin for soybean processors and is available for easy and efficient execution on
CME Globex.

Mechanics and Pricing

Some trade the soybean crush using a 1:1:1 ratio of Soybean, Soybean Meal, and
Soybean Oil futures contracts. However, given the difference among contract sizes,
this method isn’t weighted appropriately according to the yield of meal and oil from
soybeans. To more precisely weigh each component, the exchange facilitates board
crushing that consists of a total of 30 contracts; 10 Soybean, 11 Soybean Meal, and
9 Soybean Oil.
Crush Calculation
[(Price of Soybean Meal ($/short ton) x .022) + Price of Soybean Oil (¢/lb) x 11] –
Price of Soybeans ($/bu.)

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US Major Crushers Locations

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Important Data Resources concerning soymeal
(Links Attached)

Oil Crops Yearbook Data provides key data on U.S. and world oilseed acreage, supply,
demand, and prices. It includes data on U.S. soybeans, cottonseed, peanuts, sunflower
seed, other special oilseeds, tropical oils, corn oil, and animal fats, as well as extensive
time series data sets on U.S. oilseeds markets.

Season-Average Price Forecasts provides three Excel spreadsheet models that use
futures prices to forecast the U.S. season-average price and counter-cyclical payment
rate for corn, soybeans, and wheat.

Soybean Costs and Returns provides data and analyses for regional and national
categories back to 1975.

Foreign Agricultural Trade of the United States (FATUS) provides summaries of recent
U.S. agricultural exports and imports, volume and value by country, commodity, and
calendar year, fiscal year, and month. Some tables are updated monthly, while others
are updated annually.

Food Consumption (Per Capita) Data System provides estimated availability for several
hundred foods available for human consumption, including added fats and oils, as well
as peanuts and tree nuts.

Global Agricultural Trade System (GATS) contains detailed agricultural trade data
between the United States and its trading partners. Standard BICO reports are available
for general information, and detailed queries can be performed by product group or HS
code. Searches can be saved and results sent by email on a recurring basis.

Production, Supply, and Distribution (PS&D) contains official USDA data on production,
supply, and distribution of agricultural commodities for the United States and major
importing and exporting countries. The database provides projections for the coming

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year and historical data on major crop, livestock, fishery, and forest commodities from
more than 200 countries.

Quick Stats: Agricultural Statistics Database offers U.S., State, and County-level
agricultural statistics for many commodities and data series. Quick Stats offers the
ability to query by commodity, State, and year.

National Oilseed Processors Association (NOPA) Crush Report contains data from the
12 member companies that account for approximately 95% of the US soybean crush.
The report includes information on:

● Soybean crush and oils stocks for the current month, previous month and
comparable month a year ago for six regions, including: (1) Illinois; (2)
Indiana, Kentucky, Ohio and Michigan; (3) Southeast U.S.; (4) Southwest
U.S.; (5) Iowa; and (6) Minnesota, North Dakota, South Dakota and Montana
● Total soybean crush and oil stocks for the current month, previous month
and comparable month a year ago
● Soybean meal: tons produced, yield, and exports for the current month,
previous month and comparable month a year ago
● Soybean oil: pounds produced and yield for the current month, previous
month and comparable month a year ago.

World Agricultural Supply and Demand Estimates (WASDE) is prepared and released
by the World Agricultural Outlook Board (WAOB). The report is released monthly, and
provides annual forecasts for supply and use of U.S. and world wheat, rice, coarse
grains, oilseeds, and cotton. The report also covers U.S. supply and use of sugar,
meat, poultry eggs and milk, as well as Mexico’s supply and use of sugar.

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