Pricing soybeans on the basis of oil and protein content
1976
Updaw, N.J. | Bullock, J.B. | Nichols, T.E. Jr
The value of soybeans depends on their oil and protein content and the price of soybean oil and meal. however, due to the difficulties of determining oil and protein content at the time of delivery, these are not considered factors in the current pricing system. instruments for quick and accurate measurement of protein and oil content of soybeans (and other grains) are becoming available. this will make it possible to price soybeans on the basis of oil and protein content. this paper reports the development of a price discount schedule that reflects oil and protein content of soybeans. the discount schedule is based on a standard soybean which has 18 percent oil content and 35.86 percent protein content. the discounts (premiums) for some types of soybeans can be substantial. for example, soybeans with 17 percent oil content and 32 percent protein content are worth 53.64 cents per bushel more than standard soybeans when the price of soybean oil is 25 cents per pound and 44 percent soybean meal is selling for $140/ton.
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