Summer soybean values

We have developed a summer cash soybean price model based on the U.S soybean supply usage balance as forecast by the USDA in late summer and the price of soybeans prevailing in the spring. The results of the equations are displayed in the accompanying chart. 

As a start we have assumed the WAOB May soybean supply/usage forecast. Of course the required inputs could change radically as the summer progresses. But May’s estimate provides a base to evaluate summer developments. Note that the current price line is close to the forecast range.