What is the expected soybean meal price?
The expected soybean meal price is set in three different ways, depending on the insurance period and the lags used for the feed prices. For feed months with unexpired futures contracts, the expected soybean meal price is the simple average of daily settlement prices for the CBOT soybean meal futures contract for that month expressed in dollars per ton over the three business days prior to the last trading day of the month. For feed months with expired futures contracts (example: the December soybean meal price for the LGM insurance policies sold in January), the expected soybean meal price is the simple average of daily settlement prices for the CBOT soybean meal futures contract for that month expressed in dollars per ton in the last three trading days prior to contract expiration. For feed months without futures contracts, the expected soybean meal price is the weighted average of the expected soybean meal prices for surrounding contract months where the weights are based on the tim
For months in which a CME Group soybean meal contract expires, the expected soybean meal price is the simple average of the daily settlement prices of the CME Group soybean meal futures contract for the month during the expected price measurement period. For other months, the expected soybean meal price is the weighted average of the immediately surrounding months simple average of the daily settlement prices during the expected price measurement period. The expected price measurement period is the three days prior to and including the last Friday of the month that is a business day. (See the CEE for additional information on the calculation of the expected soybean meal price.) Prices will be released by RMA after the markets close on the last day of the price discovery period.
