Estimating the processed value of soybeans

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.