SOYBEANS QUALITY PRICE DIFFERENTIALS FROM AN ELEVATOR'S PERSPECTIVE

Soybean prices are determined by interaction between various factors. At an elevator, discount prices for unique characteristics can range from 0.02 cents per bushel to 7.71 cents per bushel of soybeans. This variation suggests that producers of soybeans need quality-characteristic specific information concerning soybeans pricing at the market. This study uses a hedonic model to evaluate price differentials associated with soybean quality based on grain elevator data during the 1998 production period. Foreign material, moisture, bean damage, and net weight were found to significantly influence the cash price of soybeans.