Fluctuations Of Soybean Prices Influencing Factors

As the saying goes”Grain is more important than anything else.”Premier Wensaid”If we have grain in hand，our hearts will not be panic”. The slang or quotes areall in the clear to the extreme importance of agricultural products. Agriculturalproducts as an important commodity in the social and economic life play animportant role in both the necessities of agricultural products, but also is animportant strategic products. In the war, famine and other extreme conditions, theamount of agricultural products determines the success of the war, and the politicalstability. In addition, agricultural products is an important industrial raw materialsand feed ingredients, agricultural products prices as a percentage of base price，affects the interests of all parties. From the international environment, manycountries prohibit the export of gain, and our country is facing increasingly seriousinternational situation. Agricultural products security as a public good is to ensurethat an important part of national economic security.Soybean as a kind of important agricultural products, is rich in protein. Soybeanis a kind of very important oil crops. And soybean oil is China’s first large ediblevegetable oil. Crushing production of soybean meal is an important source of proteinfeed. So the price of the fluctuation on the feed industry, animal husbandry andaquaculture have larger impact. Taken together, the soybean industry related industryhas important strategic significance and having a direct effect on people’s livelihood.Therefore to understanding the influence factors of soybean prices in China hasimportant practical significance. And soybean market is open the earliest agriculturalproducts market in our country. Soybean market in China is currently the highestlevel of international agricultural commodities. The price influence factors ofresearch have a deeper demonstration and reference function.The price volatility of soybean in China is the object of this paper. After readinga large number of domestic and foreign literature, we found that factors of agricultural price fluctuations were divided into three categories. The first is thetraditional influence factors, including economic development, natural factors andspecialization; the second is a new influencing factors, including energy prices,government policies, and speculative factors; The last category is the exchange rateand other factors. Through the use of trade policy theory, the cobweb theory, theoryof market failure theory and the peasant household production and managementbehavior, the paper analyzes the fundamental cause of the fluctuations in the pricesof soybean in China’s economic development process. The paper found out factors ofsoybean fluctuations in the current economic and social environment. Time seriesanalysis of soybeans, initially confirmed the factors on the degree of influence offluctuations in the prices of soybean. Finally, the article put forward countermeasuresto mitigate the volatility of prices of soybeans, for China’s reality.