The major U.S. oilseed crops are soybeans, cottonseed, canola, rapeseed, sunflower seed, and peanuts. Soybeans are the dominant oilseed in the United States, accounting for about 90 percent of U.S. oilseed production. Most U.S. soybeans are planted in May and early June and harvested in late September and October; see Usual Planting and Harvesting Dates for U.S. Field Crops for soybean dates by region.

U.S. soybean plantings peaked at 75.1 million acres in 2004, a 30-percent increase since 1990. Increased planting flexibility, steadily rising yield improvements from narrow-rowed seeding practices, a greater number of 50-50 corn-soybean rotations, and low production costs (partly due to widespread adoption of herbicide-tolerant varieties) favored expansion of soybean acreage in the 1990s. More than 80 percent of U.S. soybean acreage is concentrated in the upper Midwest, although significant amounts are still planted in the historically important areas of the Delta and Southeast. Acreage tends to be concentrated where soybean yields are highest.

Rising yields have also encouraged expansion of soybean acreage, as new seed varieties, fertilizer and pesticide applications, and management practices have improved over time. Higher yields reduce per-bushel production costs, which enhances profitability. ERS data indicate that soybean production costs and returns for each region vary from the national average. Midwestern soybean producers generally have higher yields and lower per-acre cash costs than Southern and Eastern producers.

Data from the 2002 Census of Agriculture indicated that 317,611 U.S. farms raised soybeans in 2002, down from 511,000 in 1982. With more acreage and fewer farms, harvested soybean acreage per farm increased from 114 acres in 1978 to 228 acres in 2002. Although small farms with less than 250 acres accounted for 72 percent of the farms growing soybeans, these farms produced only 26 percent of the 2002 crop. Irrigation was used on 5.5 million acres of soybeans, or 7.5 percent of total 2002 acreage. Individual or family farms accounted for 85 percent of all soybean farms in 2002 and 73 percent of soybean production. The remainder were largely partnerships and small family-held corporations, with other corporations accounting for less than 1 percent of soybean farms and soybean production.

In the United States, soybeans are most commonly grown in a crop rotation with corn. As soybean acreage in the South has declined since the early 1980s, there is less double cropping of soybeans with winter wheat. In recent years, an increasing number of soybean farmers have adopted conservation tillage practices. With less intensive soil cultivation, weed control depends more heavily on herbicide applications. Soybean pesticide use (nearly all of which are herbicides) ranks second only to corn. Commercial fertilizer was applied to less than 40 percent of soybean acreage, a much lower rate than for most row crops (e.g., corn and cotton). Unlike other crops, soybeans can fix their own nitrogen and require minimal nitrogen fertilizer.

Soybeans were one of the first bioengineered crops to achieve commercial success. USDA now conducts a farm survey to determine the extent of the adoption of biotech crops. The data indicate that soybeans comprise the greatest number of U.S. biotech crop acres.

The popularity of bioengineered soybeans among U.S. farmers has ramifications for resource use, marketing, and international trade. Herbicide-tolerant soybeans have changed the amount and type of herbicides used by farmers. In response to consumer preferences, both domestic and foreign, grain handlers are assessing the value of segregating bioengineered soybeans from conventional varieties. The added cost for segregating nonbiotech corn and soybeans could be higher than for segregating value-enhanced crops. Differentiating biotech and nonbiotech commodities may become an issue for grain handlers. Initially, the bioengineering of oilseed crop traits has focused on improving production attributes, such as higher yields and lower costs. But enhanced functionality characteristics will soon emerge.

In the United States, nearly all soybeans are crushed to extract the oil from the resulting meal. A comparatively small amount of whole soybeans are used for seed, roasted for snacks or on-farm dairy feed, and consumed as traditional soyfoods such as tofu. Almost all soybean crushers are located near the major production regions, with good access to rail and barge carriers that transport products to Gulf of Mexico ports. For crushers, the soybean processing decision involves choosing when to commit to buying soybeans (e.g., from farmers), to processing them, and to selling soybean meal and oil (e.g., to food and feed manufacturers). The main decision variable in making binding commitments on future dates to sellers and buyers is the gross soybean processing margin. This margin equals the per-bushel revenue of soybeans processed into oil and meal minus the per-bushel soybean price. If the gross soybean-processing margin is high enough, a processor will commit soybean-processing resources for that date. If it is too low, the processor keeps the processing resources available for a future date and a higher margin.

Soybean meal is the most valuable component obtained from processing the soybean, ranging from 50-75 percent of its value (depending on relative prices of soybean oil and meal). By far, soybean meal is the world's most important protein feed, accounting for nearly 65 percent of world supplies. Livestock feeds account for 98 percent of soybean meal consumption, with the remainder used in human foods such as bakery ingredients and meat substitutes.

Soybean oil generally has a smaller contribution to soybean value, as it constitutes just 18-19 percent of the soybean's weight. Yet soybean oil accounts for about two-thirds of all the vegetable oils and animal fats consumed in the United States. It is mainly used in salad and cooking oil, bakery shortening, and margarine, as well as in a number of industrial applications. Worldwide, soybean oil is still the largest source of vegetable oil. However, the rapid growth in palm-oil output means it will likely surpass soybean oil's top ranking within a few years.

Soybean Futures Information

Soybean Futures Contract Size

5,000 bushels

Deliverable Grades

No. 2 Yellow at par, No. 1 yellow at 6 cents per bushel over contract price and No. 3 yellow at 6 cents per bushel under contract price*

*No. 3 Yellow Soybeans are only deliverable when all factors equal U.S. No. 2 or better except foreign material.

Tick Size

1/4 cent/bu ($12.50/contract)

Price Quote

Cents bushel

Soybean Futures Contract Months Sep, Nov, Jan, Mar, May, Jul, Aug

Soybean Futures Last Trading Day The business day prior to the 15th calendar day of the contract month.

Soybean Futures Last Delivery Day Second business day following the last trading day of the delivery month.

Soybean Futures Trading Hours Open Auction: 9:30 a.m. - 1:15 p.m. Central Time, Mon-Fri.
Electronic: 6:31 p.m. - 6:00 a.m. and 9:30 a.m. - 1:15 p.m. Central Time, Sun.-Fri.
Trading in expiring contracts closes at noon on the last trading day.

Soybean Futures Ticker Symbols Open Auction: S   Electronic: ZS

Soybean Futures Daily Price Limit 50 cents/bu ($2,500/contract) above or below the previous day's settlement price. No limit in the spot month (limits are lifted beginning on First Position Day