Welcome to Scholar Publishing Group

Academic Journal of Agricultural Sciences, 2022, 3(1); doi: 10.38007/AJAS.2022.030102.

Financing Risk Based on the Direction of Soybean Trade


James Yong Liao 

Corresponding Author:
James Yong Liao

Philippine Christian University, Philippine


Nowadays, although China is a large agricultural country, due to the foreign policy, the import tariff of soybean has been reduced. As a result, the low price soybean abroad has a strong impact on the domestic market, resulting in the rapid growth of China's soybean import, which stimulates the growth of the number of soybean trade financing business. Soybean financing, like crude oil financing, belongs to commodity financing. But now the soybean import is increasing gradually, which leads to the acceleration of structural transformation in China. Similarly, due to price, trade contract terms, policies and other factors, the current soybean trade financing faces a huge risk. If the investment funds of enterprises with financing soybean business are not well managed, the enterprises will face a huge risk of asset devaluation. Therefore, this paper analyzes the factors that will bring risks to soybean financing in the society, understands the information of Chinese soybean import enterprises, and gives constructive risk control opinions and green financing methods for various factors that will bring risks to the financing of China's soybean trade. We should pay close attention to the trend of international soybean market, adverse contract terms, and advantages The management mode of soybean products will be changed, so as to reduce the production cost of domestic soybean and the price of domestic soybean, so as to fight for the right to speak in the international soybean market, help the enterprises with soybean financing business to reduce the business risk, reduce the impact of changes in foreign economic environment on soybean production and the asset damage to Chinese enterprises.


Soybean Financing, Influencing Factors, Risk Control, Green Financing

Cite This Paper

James Yong Liao. Financing Risk Based on the Direction of Soybean Trade. Academic Journal of Agricultural Sciences (2022), Vol. 3, Issue 1: 14-26. https://doi.org/10.38007/AJAS.2022.030102.


[1] Sun J, Mooney H, Wu W. Importing food damages domestic environment: Evidence from global soybean trade. Proceedings of the National Academy of Sciences of the United States of America, 2018, 115(21):5415. https://doi.org/10.1073/pnas.1718153115

[2] Jiayou Wang. Analysis of the Factors Influencing Japan’s Soybean Import Trade: Based on Gravity Model. American Journal of Industrial and Business Management, 2016, 06(2):109-116. https://doi.org/10.4236/ajibm.2016.62011

[3] Lee, Tani, Tran. Major Factors Affecting Global Soybean and Products Trade Projections. amber waves, 2016,10:50. DOI: 10.22004/ag.econ.244273

[4] Xin C , Shu-Dong Z . Research of Impact of Trade Environment Change on Domestic and Foreign Soybean Price Transmission System. soybean science, 2016.,10:159-165.

[5] Al-Amin A Q , Alam G M , Fei Y S , et al. Price and Trade Mechanism for Palm and Soybean Oils: A Comparative Analysis of Economic Development between Asia and Contemporary World. Asian Journal of Agricultural Research, 2015, 9(1):1-11. https://doi.org/10.3923/ajar.2015.1.11

[6] Wang S , Wei S , Chen Y , et al. Comparison of soybean cultivars enriching Cd and the application foreground of the low-accumulating cultivar in production. Polish Journal of Environmental Studies, 2017, 26(3). https://doi.org/10.15244/pjoes/67576

[7] SUN ZuDong, ZHANG ZhiPeng, CAI ZhaoYan. Establishment of an Evaluation System of Shade Tolerance in Soybean and Its Variation in Southern China Germplasm Population. scientia agricultura sinica, 2017,42:57-71. http://en.cnki.com.cn/Article_en/CJFDTOTAL-ZNYK201705002.htm

[8] Kong-Lin K E , Hong-Jin X , Yan-Xiang K , et al. Identification and Evaluation of China's Industrial Injury Caused by US Soybean Dumping:Based on Partial Equilibrium COMPAS Model. Journal of Business Economics, 2017,24,2. http://en.cnki.com.cn/Article_en/CJFDTOTAL-SYJG201706009.htm

[9] Hao Cheng, Hang-Xia Jin, Jun-Yi Gai. [Transgenic technology and soybean quality improvement]. Hereditas, 2020, 33(5):431-436. https://doi.org/10.3724/SP.J.1005.2011.00431

[10] Buller L S , Ortega E , Bergier I , et al. Sustainability assessment of water hyacinth fast pyrolysis in the Upper Paraguay River basin, Brazil. Science of the Total Environment, 2015, 532(nov.1):281-291.  https://doi.org/10.1016/j.scitotenv.2015.05.129

[11] Yin W . LTC Financing: Breakthrough Proposal Looks to Private Sources. insurance advocate, 2015, 5(18):n/a-n/a. 

[12] Jing Z , Qianging G U , Jiao D U . Soybean Import Dependence and Its Effect on Soybean Import Security in China. soybean science, 2015,4: 23-24. DOI: 10.11861/j.issn.1000-9841.2015.03.0503

[13] MA Salam, M Kamruzzaman. Comparative and competitive advantage of soybean cultivation in Noakhali and Laxmipur District of Bangladesh. Journal of the Bangladesh Agricultural University, 2016, 13(2):265. https://doi.org/10.3329/jbau.v13i2.28798

[14] Rizov, IvelinRodriguezCerezo, Emilio. The approach of European coexistence bureau for sustainable coexistence of genetically modified soybean crops with conventional and organic farming. 2015,43:47-56. 

[15] Hans Christer Andersson, Salvatore Arpaia, Detlef Bartsch. Scientific Opinion on application (EFSA-GMO-NL-2008-52) for the placing on the market of herbicide tolerant genetically modified soybean A5547-127 for food and feed uses, import and processing under Regulation (EC) No 1829-2003 from Bayer CropScience. efsa journal, 2015, 12(5):4130-4130. https://doi.org/10.2903/j.efsa.2014.3680

[16] Stephen C Littlechild. Wholesale Spot Price Pass-Through. Journal of Regulatory Economics, 2019, 23(1):61-91. https://doi.org/10.1023/A:1021883431400

[17] C. W. Morgan. Futures Markets and Spot Price Volatility: A Case Study. Journal of Agricultural Economics, 2016, 50(2):247-257. https://doi.org/10.1111/j.1477-9552.1999.tb00811.x

[18] G.B. Shrestha, Wang Feng. Effects of series compensation on spot price power markets. International Journal of Electrical Power & Energy Systems, 2015, 27(5-6):428-436. https://doi.org/10.1016/j.ijepes.2005.03.001 

[19] Li Y , Flynn P C . Electricity deregulation, spot price patterns and demand-side management. Energy, 2016, 31(6/7):p.908-922. https://doi.org/10.1016/j.energy.2005.02.018

[20] Erik  Dohlman,  Randy  Schnepf,  Christine  Bolling.Agriculture  in  Brazil  and  Argentina: Developments and Prospects for Major Field Crops .Market and Trade Economics Division, Economic Research Service, US Department of Agriculture, 2018,18:25.  

[21] Yano W M . Forward Exchange, Futures Trading, and Spot Price Variability: A General Equilibrium Approach. Econometrica, 2015, 55(6):1433-1450. https://doi.org/10.2307/1913565

[22] WANG Shu-ke, LI Shun-long, XIE Xue-jun. Factors Affecting Soybean Production in Degraded Wetland of Sanjiang Plain. Soybean Science, 2014,56:60. http://en.cnki.com.cn/Article_en/CJFDTotal-DDKX201402023.htm

[23] ROCHA, Fernando S, CAMPOS. Migração de Meloidogyne incognita para as Raizes de Soja In Vitro. findings brief health care financing & organization, 2018, 15(2):626-36.

[24] Widhianthini. Dampak Penentuan Iuran Air Dan Ipair (Iuran Pelayanan Air) Terhadap Pola Tanam Dan Pendapatan Petani. Soca, 2015,6:33.

[25] Falkowski J , Bugnacka D , Kozera W , et al. Effects of herbal preparation digestarom and salinomycin on the production performance of young growing pigs [20-40 kg of live weight]. acta scientiarum polonorum zootechnica, 2017, 6(3):344–351. DOI:10.1177/107424840100600306

[26] Pamela Glass. Public-private funding for waterways infrastructure. Work Boat, 2015, 71(6):22-24.

[27] Andrade R M T , Miccolis A . Policies and institutional and legal frameworks in the expansion of Brazilian biofuels. cifor working paper, 2018, 71(3):721-729.

[28] Marques, Luiz H, Santos, Antonio C, Castro, Boris A. Field evaluation of soybean transgenic event DAS-81419-2 expressing Cry1F and Cry1Ac proteins for the control of secondary lepidopteran pests in Brazil. Crop Protection, 2017, 96:109-115. https://doi.org/10.1016/j.cropro.2017.02.014

[29] Hao Cheng, Hang-Xia Jin, Jun-Yi Gai. [Transgenic technology and soybean quality improvement]. Hereditas, 2011, 33(5):431-436. https://doi.org/10.3724/SP.J.1005.2011.00431

[30] Joaode D. S. Carneiro, Valeria P . R . Minim , Rosiers Deliza, etal . Labeling Effectson Consumer Intentionto Purchasef or Soybean Oil. Food Quality and Preference,2015,16(7):275-282. https://doi.org/10.1016/j.foodqual.2004.05.004

[31] ZHANG Jie, ZHANG Dong-xu, SHANG Lei. Study and Application of Transgenic Technology in Soybean Breeding. Acta Agriculturae Boreali-Sinica, 2018,30:5-15. http://en.cnki.com.cn/Article_en/CJFDTotal-HBNB2008S2031.htm

[32] Leamer  E  E.The  Commodity  Composition  of  International  Trade  in  Manufactures:  AnEmpirical Analysis .Oxford Economic Papers, 2017, 26(3):350-374.https://doi.org/10.1093/oxfordjournals.oep.a041294

[33] Bergstrand,  Jeffrey  H.The  gravity  equation  in  international  trade:  some  microeconomic foundations  and  empirical  evidence  .The  Review  of  Economics  and  Statistics, 2015, 67(3):474-481. https://doi.org/10.2307/1925976

[34] Bergstrand, Jeffrey H.The Generalized Gravity Equation,Monopolistic Competition, and the Factor-Proportions  Theory  in  International  Trade  .The  Review  of  Economics  and  Statistics, 2019, 71 (1):143-153. https://doi.org/10.2307/1928061

[35] Koo  Woo  W, Karemera, David, et al.A  gravity  model  analysis  of  meat  trade  policies .Agricultural economics, 2017, (10):81–88.https://doi.org/10.1111/j.1574-0862.1994.tb00291.x

[36] Tavera Romero CA, Castro DF, Ortiz JH, Khalaf OI, Vargas MA. Synergy between Circular Economy and Industry 4.0: A Literature Review. Sustainability. 2021; 13(8):4331. https://doi.org/10.3390/su13084331

[37] Li, X. T. , Wang, J. , & Yang, C. Y. . (2022). Risk prediction in financial management of listed companies based on optimized BP neural network under digital economy. Journal of Manufacturing Processes. https://link.springer.com/article/10.1007/s00521-022-07377-0

[38] Zhang, L. Z., Mouritsen, M., & Miller, J. R. (2019). Role of Perceived Value in Acceptance of “Bring Your Own Device” Policy. Journal of Organizational and End User Computing (JOEUC), 31(2), 65-82. http://doi.org/10.4018/JOEUC.2019040104