DCE Soybean Futures and Options comprise four internationally accessible agricultural derivatives: No.1 Soybean, No.2 Soybean, Soybean Meal and Soybean Oil. Listed on the Dalian Commodity Exchange (DCE), these contracts provide exposure to China’s soybean supply chain, from raw soybean production and imports to animal feed and edible oil markets. No.1 Soybean covers non-GMO soybeans primarily used for food consumption, while No.2 Soybean includes GMO and non-GMO soybeans commonly used for crushing into soybean meal and soybean oil.
Since 26 December 2022, all four futures and options contracts have been available to eligible overseas institutional investors through China’s internationalised futures market framework. Overseas participants may access these products through approved Overseas Intermediaries, such as Orient Futures Singapore, or via the Qualified Foreign Investor (QFI) framework.
Institutions looking to trade soybean futures and options in China’s domestic market, rather than other international venues, use these DCE contracts as their primary route into Chinese soybean trading.
As one of the most actively traded agricultural futures markets in China, the DCE soybean market gives overseas participants a direct view into China’s soybean futures price formation, alongside a way to hedge or gain exposure to the country’s agricultural import and crushing cycle.
If you’re new to China’s derivatives market, we recommend starting with our China Market Access Guide before exploring the available access routes through Internationalised Route and the Qualified Foreign Investor (QFI) Scheme.
What Is DCE Soybean?
The DCE soybean complex consists of four interconnected products: No.1 Soybean, No.2 Soybean, Soybean Meal and Soybean Oil. Together they represent China’s soybean supply chain from raw soybeans, sourced both domestically and through imports, through crushing to animal feed and edible oil production.
China is the world’s largest soybean importer, bringing in over 100 million tonnes annually and accounting for more than 60% of global soybean imports. China is also among the largest consumers of soybean meal and soybean oil globally, driven by its livestock and aquaculture feed industry and its edible oil market. DCE soybean prices are widely used by crushers, feed mills and edible oil producers for hedging and price discovery, making the exchange’s soybean complex one of the most closely watched agricultural futures markets in China.
The soybean value chain can be broadly divided into three segments:
- Soybeans (raw agricultural commodity), available on DCE as No.1 Soybean or No.2 Soybean
- Soybean Meal (animal feed ingredient)
- Soybean Oil (edible oil product)
When soybeans are processed, they are crushed into soybean meal and soybean oil: approximately 80% of crushed soybeans convert to meal, and around 20% converts to oil. Because meal and oil are joint products of the same crushing process, their combined value relative to the input soybean price, commonly called the crush margin or crush spread, is closely tracked by commercial participants and often forms the basis for spread trading and hedging strategies.
What Is the Difference Between No.1 and No.2 Soybean?
DCE lists the soybean contract as two separate contracts, No.1 Soybean and No.2 Soybean, distinguished by origin and GMO status, which is a common point of confusion for anyone new to this market.
| Feature | No.1 Soybean | No.2 Soybean |
|---|---|---|
| Underlying | Non-GMO soybeans | Mainly imported GMO soybeans |
| Origin | Primarily domestic Chinese soybeans | Primarily imported soybeans |
| Delivery Standard | Non-GMO soybeans only | Both GMO and non-GMO soybeans accepted |
| Quality Basis | Edible-grade standard, centered on grain purity rate | Oil-pressing grade standard, centered on crude fat content |
| Market Focus | Domestic Chinese market | International soybean trade |
| Main Pricing Driver | Domestic supply/demand and state stockpiling policy | US and Brazilian soybean prices, exchange rates, and shipping costs |
| Key Participants | Food processors and producers | Crushers and importers |
| International Exposure | Lower | Higher |
No.1 Soybean represents non-GMO soybeans grown primarily within China, historically used as the benchmark for food-grade and domestic consumption soybean pricing.
No.2 Soybean represents predominantly GMO soybeans, sourced largely from overseas imports (mainly from Brazil, the United States and Argentina), and used mainly as a crushing input for oil and meal production rather than for direct food consumption.
What Is DCE Soybean Meal?
Soybean Meal is based on the meal produced when soybeans are crushed. Soybean meal is a primary protein source for China’s livestock and aquaculture feed industry, and demand from pig farming, poultry and aquaculture cycles directly affects soybean meal consumption and, by extension, crushing demand for soybeans.
Because meal is a joint product of the same crushing process that produces soybean oil, its price is closely linked to both the underlying soybean contracts and to Soybean Oil and is a core input into the crush margin that many commercial participants hedge against.
What Is DCE Soybean Oil?
Soybean Oil is based on the edible oil extracted from crushed soybeans. Soybean oil competes with palm oil, rapeseed oil and other edible oils, and price movements in these substitute markets can influence soybean oil demand and, indirectly, crushing economics.
Government policies affecting agricultural imports, reserve releases, and tariffs can also influence overall soybean market pricing, including the No.1/No.2 Soybean spread and the meal-oil crush spread.
Which DCE Soybean Contract Should You Trade?
| Objective | Product |
|---|---|
| Exposure to Chinese domestic soybean demand | No.1 Soybean |
| Exposure to global soybean import flows | No.2 Soybean |
| Livestock and aquaculture feed demand | Soybean Meal |
| Edible oils and cooking oil market | Soybean Oil |
What Drives DCE Soybean Prices?
Import supply
China imports most of its soybean consumption, mainly from Brazil, the United States and Argentina, making No.2 Soybean prices sensitive to external factors such as shipping schedules, weather in these growing regions, and trade policy.
Chinese crushing demand
Soybean meal is a primary protein source for China’s livestock and aquaculture feed industry. Demand from pig farming, poultry and aquaculture cycles directly affects soybean meal consumption and, by extension, crushing demand for soybeans.
The crush spread in China
Because meal and oil are joint products of crushing, their combined value relative to the soybean price (the “crush margin” or “crush spread”) influences processing volumes. A wider crush margin typically encourages more crushing activity, while a narrower margin can reduce it.
Institutions trading the China soybean crush spread often use DCE Soybean Options alongside the underlying futures to structure this exposure with defined risk, since soybean options in China provide a way to express a view on the spread without the full margin commitment of an outright futures position.
Edible oil substitution
Soybean oil competes with palm oil, rapeseed oil and other edible oils. Price movements in these substitute markets can influence soybean oil demand and, indirectly, crushing economics.
Domestic policy and reserves
Government policies affecting agricultural imports, reserve releases, and tariffs can influence both the No.1/No.2 Soybean spread and overall soybean complex pricing.
Why Trade DCE Soybean, Meal and Oil Futures and Options?
As one of the most liquid corners of China’s agricultural futures market, these contracts can also be used by market participants to:
- Hedge price risk on physical soybean, meal or oil purchases and sales
- Manage crushing margin exposure between soybean and its meal and oil outputs
- Gain RMB-denominated exposure to China’s soybean market
- Monitor China’s domestic price discovery for agricultural commodities
- Trade DCE soybean options to express a directional or spread view with defined risk
- Develop cross-arbitrage strategies between No.1 and No.2 Soybean, or between meal and oil
- Diversify agricultural trading strategies across global and Chinese markets
These contracts may be relevant to:
- Soybean, meal and oil traders and merchants
- Crushing plants and oilseed processors
- Animal feed producers
- Agricultural trading firms
- Commodity trading firms
- Hedge funds and proprietary trading firms
- Asset managers and institutional investors
How Can Overseas Investors Trade DCE Soybean?
For internationalised products, overseas participants can trade through an approved Overseas Intermediary (OI) without necessarily establishing a mainland entity.
These products may also be accessible through the Qualified Foreign Investor (QFI) framework, subject to applicable eligibility and regulatory requirements.
Orient Futures Singapore provides institutional clients with access to China’s futures markets through the applicable overseas market access arrangements, and holds Overseas Intermediary status on Dalian Commodity Exchange (DCE) alongside Shanghai Futures Exchange (SHFE), Shanghai International Energy Exchange (INE), Zhengzhou Commodity Exchange (ZCE) and Guangzhou Futures Exchange (GFEX).
Orient Futures Singapore is a Singapore-based brokerage regulated by the Monetary Authority of Singapore (MAS) and provides institutional market access to China’s commodity markets.
Our capabilities include:
- Access to DCE internationalised products, including No.1 Soybean, No.2 Soybean, Soybean Meal and Soybean Oil
- Institutional access to the full DCE soybean market
- Support for applicable QFI market access
- Professional trade execution
- Multi-exchange connectivity
- Low-latency trading infrastructure
- Access to Chinese and global agricultural commodity markets
- Institutional account onboarding and support
For agricultural trading firms, crushing plants, hedge funds, proprietary trading firms and other institutional investors, access to DCE’s soybean market can provide an additional tool for managing exposure to China’s agricultural and feed markets.
Access DCE Soybean Through Orient Futures Singapore
Whether your objective is to hedge physical soybean or crush-margin exposure, manage agricultural commodity risk, participate in China’s domestic futures market or develop cross-product arbitrage strategies, DCE’s soybean, meal and oil contracts can provide an important set of instruments for accessing China’s agricultural markets.
Speak with Orient Futures Singapore to learn more about accessing DCE Soybean products and China’s commodity markets.
DCE Soybean Futures Contract Specifications
Dalian Commodity Exchange (DCE) lists No.1 Soybean, No.2 Soybean, Soybean Meal and Soybean Oil as both futures and options, each under a 10-metric-tonne contract size, quoted in CNY per metric tonne, and settled by physical delivery for futures.
| Specification | Futures | Options |
|---|---|---|
| Listing Exchange | Dalian Commodity Exchange (DCE) | |
| Contract Symbol | A |
Call option: A-Month-C-Strike Put option: A-Month-P-Strike |
| Underlying | Non-GMO soybean | No.1 Soybean Futures (A) |
| Contract Size | 10 metric tonnes per lot | 1 No.1 Soybean Futures contract (10 MT) |
| Price Quotation | CNY per metric tonne | CNY per metric tonne |
| Minimum Tick Size | CNY 1 per metric tonne | CNY 0.5 per metric tonne* |
| Daily Price Limit | 4% of previous settlement price* | Same as underlying futures* |
| Contract Months | January, March, May, July, September, November | Corresponding futures months |
| Exercise Style | N/A | American style |
| Settlement | Physical delivery | Exercise into underlying futures |
| Trading Hours | 9:00-11:30am; 1:30-3:00pm (Beijing)*, plus other exchange-prescribed sessions | |
| Last Trading Day | 10th trading day of the contract month | Regular Options: 12th trading day of the month immediately preceding the delivery month of the underlying futures contract; Serial Options: 12th trading day of the 2nd month preceding the delivery month of the underlying futures contract; Subject to exchange rules and adjustments |
| Expiration Date | N/A | Same as the last trading day |
| Access | Internationalised and Qualified Foreign Investor (QFI) | |
*Trading hours, price limits, tick sizes, margins and other trading parameters may be adjusted by DCE. Participants should refer to the latest exchange rules and trading parameters before trading.
| Specification | Futures | Options |
|---|---|---|
| Listing Exchange | Dalian Commodity Exchange (DCE) | |
| Contract Symbol | B |
Call option: B-Month-C-Strike Put option: B- Month-P-Strike |
| Underlying | GMO soybean (import) | No.2 Soybean Futures (B) |
| Contract Size | 10 metric tonnes per lot | 1 No.2 Soybean Futures contract (10 MT) |
| Price Quotation | CNY per metric tonne | CNY per metric tonne |
| Minimum Tick Size | CNY 1 per metric tonne | CNY 0.5 per metric tonne* |
| Daily Price Limit | 4% of previous settlement price* | Same as underlying futures* |
| Contract Months | January, February, March, April, May, June, July, August, September, October, November, December | Corresponding futures months |
| Exercise Style | N/A | American style |
| Settlement | Physical delivery | Exercise into underlying futures |
| Trading Hours | 9:00-11:30am; 1:30-3:00pm (Beijing)*, plus other exchange-prescribed sessions | |
| Last Trading Day | 10th trading day of the contract month | 12th trading day of the month immediately preceding the delivery month of the underlying futures contract; Subject to exchange rules and adjustments |
| Expiration Date | N/A | Same as the last trading day |
| Access | Internationalised and Qualified Foreign Investor (QFI) | |
| Specification | Futures | Options |
|---|---|---|
| Listing Exchange | Dalian Commodity Exchange (DCE) | |
| Contract Symbol | M |
Call option: M-Month-C-Strike Put option: M-Month-P-Strike |
| Underlying | Soybean meal | Soybean Meal Futures (M) |
| Contract Size | 10 metric tonnes per lot | 1 Soybean Meal Futures contract (10 MT) |
| Price Quotation | CNY per metric tonne | CNY per metric tonne |
| Minimum Tick Size | CNY 1 per metric tonne | CNY 0.5 per metric tonne* |
| Daily Price Limit | 4% of previous settlement price* | Same as underlying futures* |
| Contract Months | January, March, May, July, August, September, November, December | Corresponding futures months |
| Exercise Style | N/A | American style |
| Settlement | Physical delivery | Exercise into underlying futures |
| Trading Hours | 9:00-11:30am; 1:30-3:00pm (Beijing)*, plus other exchange-prescribed sessions | |
| Last Trading Day | 10th trading day of the contract month | Regular Options: 12th trading day of the month immediately preceding the delivery month of the underlying futures contract; Serial Options: 12th trading day of the 2nd month preceding the delivery month of the underlying futures contract; Subject to exchange rules and adjustments |
| Expiration Date | N/A | Same as the last trading day |
| Access | Internationalised and Qualified Foreign Investor (QFI) | |
| Specification | Futures | Options |
|---|---|---|
| Listing Exchange | Dalian Commodity Exchange (DCE) | |
| Contract Symbol | Y |
Call option: Y-Month-C-Strike Put option: Y-Month-P-Strike |
| Underlying | Soybean oil | Soybean Oil Futures (Y) |
| Contract Size | 10 metric tonnes per lot | 1 Soybean Oil Futures contract (10 MT) |
| Price Quotation | CNY per metric tonne | CNY per metric tonne |
| Minimum Tick Size | CNY 1 per metric tonne | CNY 1 per metric tonne* |
| Daily Price Limit | 4% of previous settlement price* | Same as underlying futures* |
| Contract Months | January, March, May, July, August, September, November, December | Corresponding futures months |
| Exercise Style | N/A | American style |
| Settlement | Physical delivery | Exercise into underlying futures |
| Trading Hours | 9:00-11:30am; 1:30-3:00pm (Beijing)*, plus other exchange-prescribed sessions | |
| Last Trading Day | 10th trading day of the contract month | Regular Options: 12th trading day of the month immediately preceding the delivery month of the underlying futures contract; Serial Options: 12th trading day of the 2nd month preceding the delivery month of the underlying futures contract; Subject to exchange rules and adjustments |
| Expiration Date | N/A | Same as the last trading day |
| Access | Internationalised and Qualified Foreign Investor (QFI) | |
Frequently Asked Questions
Q: What are DCE soybean futures?
DCE soybean futures are RMB-denominated, physically-delivered agricultural contracts listed on the Dalian Commodity Exchange, split by contract into No.1 Soybean (domestic, non-GMO) and No.2 Soybean (largely imported, GMO), alongside the related Soybean Meal and Soybean Oil contracts.
Q: What is the difference between DCE No.1 and No.2 Soybean?
No.1 Soybean represents non-GMO soybeans primarily grown in China. No.2 Soybean represents GMO soybeans, primarily imported from Brazil, the US and Argentina, and used mainly for crushing into meal and oil.
Q: What is the DCE Soybean's contract size?
Each contract, across No.1 Soybean, No.2 Soybean, Soybean Meal and Soybean Oil, represents 10 metric tonnes.
Q: What are the ticker symbols for DCE's soybean products?
The contract symbols are A for No.1 Soybean, B for No. 2 Soybean, M for Soybean Meal, and Y for Soybean Oil, respectively.
Q: Are DCE soybean futures internationalised?
Yes. The CSRC announced the internationalisation of No.1 Soybean, No.2 Soybean, Soybean Meal and Soybean Oil effective 26 December 2022.
Q: How are DCE soybean contracts settled?
All four contracts are subject to physical delivery at DCE-designated warehouses.
Q: Can overseas investors trade DCE soybean futures?
Yes. DCE’s No.1 Soybean, No.2 Soybean, Soybean Meal and Soybean Oil futures and options are internationalised products that are open to eligible overseas institutional investors through the Overseas Intermediary (OI) route or the QFI framework.
Q: Who trades DCE soybean, meal and oil futures?
The market is relevant to soybean, meal and oil traders, crushing plants, animal feed producers, agricultural trading firms, hedge funds, proprietary trading firms and institutional investors managing exposure to China’s agricultural commodity markets.
Q: What is soybean meal used for?
Soybean meal is primarily used as a high-protein ingredient in livestock and aquaculture feed, making it a key input for China’s pig, poultry and aquaculture farming industries.
Q: What drives soybean oil prices?
Soybean oil prices are driven by crushing demand for soybean meal (since both are joint products of the same process), competition from substitute edible oils such as palm and rapeseed oil, and broader supply and demand conditions in China’s cooking oil market.
Q: Why is DCE's soybean market important to global agricultural markets?
China is the world’s largest soybean importer and among the largest consumers of soybean meal and oil. Price discovery on DCE’s soybean, meal and oil contracts is closely watched alongside soybean futures on international exchanges as a reference for global soybean market conditions.
Q: Does DCE offer soybean options as well as futures?
Yes. No.1 Soybean, No. 2 Soybean, Soybean Meal and Soybean Oil are each available as both futures and American-style options, giving institutions a way to structure defined-risk positions or spread trades across the soybean market.
About the Author
Chong Yung Lik
Business Development Manager
Orient Futures Singapore
LinkedIn
Chong Yung Lik is a business development manager at Orient Futures Singapore, working across the full client lifecycle for institutions seeking access to China and global futures markets. As part of the Orient Futures Singapore sales team, he supports overseas clients through account opening, margin and settlement procedures, and ongoing relationship management across China and global futures and derivatives products. His articles draw on direct, team-grounded experience with the operational realities of accessing China and international markets.
