Soybean Seeds: Applications and Quality Requirements

Bulk soybean seeds: supply terms

Why FUSHKOV GCG

From the soybean complex, FUSHKOV GCG also supplies soybeans, soybean meal and soybean oil; see our soya section for the full range.

About the product

Soybean (Glycine max) is an annual legume and one of the world's main oilseed crops. Soybean seeds combine high protein and oil content, which makes them a raw material for the oils and fats, feed and food industries alike.

The soybean seeds of all varieties supplied by FUSHKOV GCG differ by end use: commercial lots go for processing, planting-seed lots for sowing. End use determines both the quality requirements and the customs classification of a lot.

Applications

Quality specifications (reference)

Reference only: parameter values follow the origin country's standard and the contract specification. Final specification is fixed in the contract.

World market

Brazil is the largest exporter of soybeans, with the USA in second place. Argentina, the third major producer, crushes most of its crop domestically and exports mainly processed products. Russia and Ukraine are notable suppliers to neighbouring markets.

For a buyer of bulk soybean seeds, this means a choice between the major export sources of South and North America and the shorter logistics of the Black Sea region, depending on destination and lot requirements.

Storage and transport

Soybean seeds are kept in dry, cool, ventilated stores or silos. High moisture and temperature degrade oil quality and reduce germination, so lots are monitored for both. Planting seed must be protected from mechanical damage: injured seed stores poorly and germinates less well.

Commercial lots ship in bulk in ships' holds and hopper wagons; planting seed more often travels in bags and big bags.

How a deal works

Below is the typical sequence of an international commodity trade. Specific terms are always set by the contract between the parties.

For grain and seeds, the set normally includes a phytosanitary certificate issued in the country of dispatch; the full list depends on the importing country's requirements.

Delivery terms: Incoterms 2020 at a glance

The Incoterms rules of the International Chamber of Commerce (ICC) allocate costs, risks and delivery obligations between seller and buyer. The current edition, Incoterms 2020, contains 11 rules; the edition that applies is named in the contract. The rules most used in commodity trade are:

• FCA (Free Carrier): the seller hands the goods to the buyer's carrier at the agreed place;
• FOB (Free On Board): the seller is responsible for the goods until they are loaded on board the vessel at the port of shipment; further costs and risks pass to the buyer;
• CFR (Cost and Freight): the seller pays freight to the port of destination, but risk passes to the buyer once the goods are on board;
• CIF (Cost, Insurance and Freight): as CFR, but the seller also insures the cargo for the buyer's benefit;
• DAP (Delivered at Place): the seller delivers the goods to the agreed destination, ready for unloading; the buyer handles import clearance.

FOB, CFR and CIF apply to sea and inland waterway transport; FCA and DAP to any mode of transport. The basis for each shipment is agreed in the contract.

Frequently asked questions

See also

Soybeans Soybean Meal Soybean Oil Rapeseed Sunflower Seeds