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Estimating the Processed Value of Soybeans

Thomas J. Brumm and Charles R. Hurburgh, Jr.

Interest in marketing soybeans on the basis of protein and oil content is increasing. Producers, breeders, handlers and buyers of soybeans need a method of evaluating soybean lots of different composition. A model is presented that predicts, given soybean composition and processing conditions, the yield of crude soybean oil and soybean meal from the processing of soybeans in a solvent extraction plant. From these yields, an estimated processed value (EPV) was calculated. For one set of price conditions, the EPV of typical soybeans had a range of $0.93 per bushel if premiums were paid for meal protein in excess of specifications and a range of $0.53 per bushel if meal protein premiums were not paid. Trading rules established by the National Oilseed Processors Association for domestic meal markets have a significant effect on the value and composition of soybean meal.