Entering text into the input field will update the search result below

Soybean Update 4/5/18

Apr. 05, 2018 3:19 PM ETTeucrium Soybean ETF (SOYB)
Viking Analytics profile picture
Viking Analytics


  • Soybeans sold off heavily in the early morning hours of 4/4/18 following tariff announcements from China, but have recovered their losses.
  • The SOYB ETF might help investors diversify their portfolio away from stocks without the need for a futures trading account.
  • The volume profile and OPEX Price Magnet for soybeans point towards slight gains for soybeans in the weeks ahead.


Soybeans sold off heavily in the overnight session and early morning hours of 4/4/18, following the announcement of tariffs by China on imported agricultural products. Since China is a big purchaser of U.S. soybeans, the sell-off erased all of the recent gains in soybean futures.

In our investment portfolio, we will occasionally have long or short positions in soybeans and other commodities because we like genuine diversification to stock indices, particularly since the current P/E valuations in stocks appear to be extended.

The Teucrium Soybean Fund (NYSEARCA:SOYB) provides investors unleveraged direct exposure to soybean futures without the need for a futures account. The SOYB ETF holds three corn futures contracts, and periodically rolls them by selling the current holdings and buying other futures contracts. Here are the holdings of the SOYB ETF as of 4/3/2018.

At a value of $10.00 per bushel, each futures contract (which contains 5,000 bushels) represents $50,000 of notional value and many retail investors will not want to allocate that much value to a position in soybeans. For these investors, and also for those without access to a futures trading account, an investment in SOYB might provide commodity exposure that is not correlated to the S&P Index.

SOYB ETF and Soybean Futures

Like many commodity ETFs, there has been a historical time decay in the value of the SOYB ETF relative to the front-month values of soybean futures.

It appears that the relative time decay for the SOYB ETF is less pronounced than the time decay for the CORN ETF, so investors who want agricultural exposure in their portfolio (and don't have futures trading capability) might generally prefer SOYB to CORN.

Volume Profile of the front-month futures contract

Since the beginning of November 2017 (close to the beginning of the current agricultural year), the “Point of Control” for the

This article was written by

Viking Analytics profile picture
Systematic and quantitative analysis.Rob McBride has 15+ years of experience in the systematic investment space and is a former Managing Director at a $14 Billion hedge fund. Rob has deep experience with market data, software and model building in financial markets. Erik Lytikainen has 25+ years of experience as an entrepreneur, business developer and financial analyst. He founded Viking Analytics in 2015 after selling a commodity production & trading company he co-founded in 2006.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.