Question: ADM has a soybean processing facility that has committed to delivering a certain quantity of processed soy protein. ADM must have a soybean supply for

ADM has a soybean processing facility that has committed to delivering a certain quantity of processed soy protein. ADM must have a soybean supply for the next

8

months to ensure they are able to meet this contractual obligation. Currently, the soybean market does not signal that storage is profitable, but ADM has to provide this incentive. What is this called?

Conglomerate

Convenience Yield

Opportunity Cost

Market Intelligence

ADM has a soybean processing facility that has committed to delivering

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