ABSTRACT
Variations in soybean prices are caused by changes in demand for soybean oil and meal, as well as by changes in soybean supply. Regarding oil and meal, there have been several factors contributing to increased demand over the last decade. Soy oil dominated the United States edible fats and oils market with a commanding 60 percent of the total edible fats and oils market and as high ss 80 percent of the margarine market and 90 percent of the prepared dressings market. On a world-wide basis in 1978, soy oil accounted for approximately 23 percent of world production while its nearest competitor, sunflowerseed, accounted for only 9 percent. Price risks in marketing soybeans have grown substantially in the 70's compared to the 60's. Potential for improving profits through better management is greater in the area of pricing than production. Producers have essentially three major pricing alternatives-cash, cash contracting, and hedging via futures.
