Soybean Meal Spring rally.
Cash soybean meal has potential for a spring rally. The accompanying scatter studies display the highs and lows for cash soybean meal as a function of a model forecast. The model uses the US soybean carryout and soybean meal exports to forecast the winter spring soybean meal price range. Note there is significant upside potential assuming the current USDA soybean supply/usage estimates.
A larger than expected South American soybean crop and disappointing soybean sales to China are major hazards to long soybean meal positions. The red points represent price at time of publishing.