Author
Bullock, David W.
This study compares purchasing strategies for meeting essential amino acid (EAA) requirements for soybeans in the Pacific Northwest export market. The analysis shows that specifying minimum EAA requirements in purchase contracts is the most reliable and cost-effective strategy and instills a sense of security and trust in meeting high-quality EAA end-user requirements. Additionally, purchasing based on minimum protein and oil specifications meets EAA requirements about 80% of the time, with the odds increasing to 93% when targeting origins based on soybean quality survey reports, albeit with added testing costs.
The response of U.S. soybean export basis (Gulf and Pacific Northwest) to changes in supply and demand (domestic and international), transportation costs, logistics conditions, and export activity variables was examined from both a market-year average and seasonal analog perspective. The market-year average results indicated that basis at both locations were highly correlated and influenced primarily by international and domestic competition. The seasonal analog results indicated a wide variation in seasonality across marketing years for both locations with transportation costs, logistic conditions, and export activity having the greatest influence on the seasonal analog grouping.