Soybean Meal (ZM) – Knowledge
Contract specs • Seasonality • Planting & Harvest • COT • Reports • Production • Trading notes
1️⃣ Contract Specifications
| Exchange / Symbol | CBOT (CME Group) / ZM |
|---|---|
| Underlying | Soybean Meal (derived from crushing soybeans) |
| Contract Size | 100 short tons (~90.7 metric tons) |
| Tick Size | $0.10 per short ton = $10 per tick |
| Point Value | $1.00 per short ton = $100 per full point |
| Contract Months | Jan, Mar, May, Jul, Aug, Sep, Oct, Dec |
| Settlement | Physical delivery (shipping certificates; designated delivery points) |
| Margin (Indicative) | ~$2,100 initial / ~$1,900 maintenance (varies by broker/exchange) |
| Trading Hours (U.S. / EU) | Globex (electronic): 08:00 – 14:20 CT → 15:00 – 21:20 CET (Winter) → 16:00 – 22:20 CEST (Summer) |
| Last Trading Day | Business day prior to the 15th of the contract month |
| Commission Example | $3 / side (Futures) or CFD equivalent at your broker |
2️⃣ Seasonality Overview
Soybean Meal seasonality is closely tied to the soybean complex and livestock feed demand. Prices often strengthen in late winter through spring (feed demand, weather risk into U.S. planting), and can soften around Northern Hemisphere harvest when supply pressure increases.
- 📈 Bullish window: Feb – May
- 📉 Bearish window: Sep – Nov (harvest pressure / crush adjustments)
- Neutral: Dec – Jan
Seasonal reference: 10–15 year averages on continuous ZM.
3️⃣ Planting & Harvest Calendar (via Soybeans)
| Region (Soybeans) | Planting | Harvest |
|---|---|---|
| USA (Midwest) | April – June | September – November |
| Brazil (Main Crop) | September – December | February – April |
| Brazil (Second Crop) | January – February | May – June |
| Argentina | October – December | April – June |
| China | April – June | September – October |
Note: Soybean Meal supply is a function of soybean crush; planting/harvest timing in major producers drives ZM availability and pricing.
4️⃣ COT Insights
In the soybean complex, Meal can lead rallies when feed demand is strong or when crush margins favor meal over oil. Managed money typically builds longs during weather scares and demand upswings, while commercials hedge forward sales.
- COT Index > 85 → speculative long saturation risk
- COT Index < 15 → potential washout / reversal zone
- Watch spreads: Meal vs Oil (crush margin dynamics)
Reference: CFTC “Soybean Meal – Chicago Board of Trade”.
5️⃣ Key Reports & Data Releases
| Report | Agency | Frequency / Timing |
|---|---|---|
| WASDE (World Agricultural Supply & Demand Estimates) | USDA | Monthly, ~10th–12th |
| Crush Reports (US/NOPA) | USDA/NOPA | Monthly |
| Export Sales (Soybeans/Meal) | USDA | Weekly, Thu 14:30 CET |
| Crop Progress (Soybeans) | USDA | Weekly, Mon 22:00 CET |
| COT Report | CFTC | Weekly, Fri 21:30 CET |
| Macro (FOMC, CPI, NFP) | Fed/BLS | Monthly |
6️⃣ Global Production & Supply (Context)
Soybean Meal output tracks global soybean production and crush capacity. Major producers/exporters in beans (Brazil, USA, Argentina) dominate Meal supply; import demand is driven by livestock sectors (poultry, hogs).
- Top soybean producers (context): Brazil, USA, Argentina, China, India
- Key Meal exporters: Argentina, Brazil, USA
- Key Meal importers: EU, Southeast Asia (feed demand)
7️⃣ Processing Economics (indicative)
| Driver | Impact | Notes |
|---|---|---|
| Crush Margin | ↑ margin → ↑ crush → ↑ Meal supply | Relative pricing Meal vs Oil vs Beans |
| Energy & Logistics | ↑ costs → ↑ delivered Meal prices | Freight, storage, port congestion |
| Feed Demand | ↑ demand → ↑ Meal premium | Livestock cycles (hogs, poultry) |
8️⃣ Correlations & Proxies
- Strong linkage within the soybean complex: ZS ↔ ZM ↔ ZL
- Meal often outperforms when feed demand rises relative to oil demand
- ETF / CFD proxies: Meal CFDs (broker), Soybean complex ETFs
9️⃣ Trading Notes / My Take
Soybean Meal can trend explosively during weather scares or when crush economics favor Meal. I watch ZM relative strength vs ZS and ZL, COT extremes, and VWAP clusters for entries. Best liquidity aligns with U.S. session (15:30–19:00 CET).
- Seasonal long bias: Feb–May (align with COT & weather risk)
- Monitor NOPA crush and export pace
- Beware of rollover weeks and thin holiday sessions