Soybeans – Economic Value Study

The accompanying economic value study estimates the winter – early spring high and low for Central Ill soybean prices. The study uses U.S. soybean carryout stocks and the quantity of U.S. soybean oil used as fuel or exported as independent variables. The resulting forecasts are very optimistic compared to USDA’ price estimates.

The market may be factoring in larger carryout stocks than the USDA’ current 475 million bushels. We present the model as it does suggest significant upside price potential especially if crop problems persist in Brazil