Soybean Meal Economic Value 06/17/2020
Soybean meal appears to have significant upside potential assuming the USDA’s June 2020/2021 soybean supply/demand balance. The graph shows the calculation of high and low 48 % cash soybean meal forecasts when the 2020/2021 soybean carryout and soybean meal export estimates are applied to parameters derived from 1983 through 2020 data.
A much larger soybean crop than forecast by USDA is the major hazard associated with long soybean meal positions.