December Soybean Meal & Livestock Values
December soybean meal is trading on the low side of livestock prices based on the last 50 years of historical data. We have charted the June/August price range for December soybean meal divided by the livestock price index published by the USDA. The point for 2024 is calculated using the 4/25/2024 close for the December soybean meal contract and the LPI implicit from USDA April livestock price forecasts as published in the April WASDE report..
The domestic demand for soybean meal is dependent on livestock profitability and numbers. The LPI variable probably won’t generate a major soybean meal price rally as 2024 US soybean production will likely be the dominant force in summer soybean meal price formation. But, the relative profitability of livestock and poultry operations will raise the floor for the price of soybean meal given various soybean crop size possibilities.