There’s more than meets the eye in determining soybean value than just bushels per acre.
U.S. soy’s biggest customers buy soybeans for the oil and protein content inside. Better soybean quality improves demand among these customers, which can impact the price farmers receive.
The market already values U.S. soybeans based on the component makeup of the bean. And, according to Tom Malecha, Vice President of CHS’s processing and food ingredients divisions, more farmers could be paid based on protein and oil in the future.
“So the market is already valuing U.S. soybeans based on the component makeup of the beans. In the end I do think we’ll continue to see more component pricing rather than less, but I don’t believe it’s a change that’s gonna happen overnight.”
Malecha also serves on the United Soybean Board’s value task force as a representative of the soybean-processing industry.
For more information on the importance of soybean quality, visit https://www.beyondtheelevator.org.