An agricultural trading company, or international trading company is typically an independent company that commercializes agricultural or raw materials in the natural marketplace. An international trading company from Latin America can deliver productos agricolas de latinoamerica while providing quality agricultural products and creating solutions per client’s requests.
Such products traded on the international trading company scene include soybean seeds, soy, sunflower and cotton flours, and soy, sunflower and corn oils. Some soybean trading companies also specialize in cereals such as corn, wheat and oat. Two byproducts of the soybean include soybean meal and soybean oil. Each byproduct market has a supply and demand chain and a relationship with one another. Using a crush spread strategy, soybean traders purchase one contract of soybeans and sell one contract of soybean oil and one contract of soybean meal. The process helps diminish exposure to market forces and buffers against supply and demand factors.
Soybean trading companies offer clients market updates and information regarding agriculture economy including costs and trends, assistance in purchases, shipment logistics and tracking and more.
More than half of the world’s soybean production occurs in the Americas. The U.S. exports 37 percent of the world’s soybeans. Originally considered merely an industrial product around the turn of the last century, soybeans rose to popularity for human consumption during World War II and have had a significant impact on U.S. farming. International soybean production and sales is estimated at about $30 billion.