ETF Talk

Sink Your Teeth Into Soybeans

You may be most familiar with soybeans as the snack, edamame, served at your favorite Japanese restaurant or as a dairy-free alternative to milk in your morning coffee. As a commodity, however, soybeans are ubiquitous in the American food supply. Soybeans appear as protein-rich flour in processed foods, vegetable oil and meal for animal feed. In addition, various forms of fermented and prepared soy are staples of many Asian diets. One ETF that tracks the price of soybeans is Teucrium Soybean (SOYB).

This fund is designed to mirror the daily changes of the weighted averages of the closing settlement prices for three soybean futures contracts traded on the Chicago Board of Trade (CBOT). It normally uses direct investment in those futures contracts, but it may also invest in options on exchange-traded soybean futures contracts or in soybean-based swap agreements.

While soybean demand remains high worldwide, soybean production has more than met the demand, depressing prices. Therefore, the fund is down 3.49% for the year. It was up 0.09% in 2012, after a drought.

Read more about how you can profit from soybeans at Eagle Daily Investor.

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