# Soybean Meal’s Steep Backwardation Dampening Demand | CZ app

> The August 2022 CBOT soybean meal contract converged sharply with physical prices during delivery, settling at $513.90 per short ton, up 22% in two weeks. The futures curve was steeply backwardated, showing that current demand was outpacing supply.

- Date: 2022-08-09 · published 2022-08-09T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/40106-soybean-meal-s-steep-backwardation-dampening-demand-cz-app
- Commodities: [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

A backwardated curve signals tight nearby supply and encourages buyers to delay purchases. Physical meal prices are the reference for feed costs.

## Read by commodity

- SBM: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| SBM | 2022-08-14 | 1 | -10.5% | -5.3 | The August contract's delivery-driven convergence to $513.90 (+22% in two weeks) inflated the front-month price, so its expiry and roll to lower deferred contracts plausibly explains a large part of the outsized one-day drop. |

## Sources

- czapp.com: https://www.czapp.com/analyst-insights/soybean-meals-steep-backwardation-dampening-demand/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.