Methodology — exactly how each number is calculated
Every AgriParity calculator shows its full chain so you can audit the math. Reference values (bushel weights, standard specs, densities, yields) live in a single data file and every one is editable, so you can match it to your own contract.
1. CBOT Chain Converter
US grains trade in cents per bushel. A bushel is a volume, so the bushel→tonne factor depends on the commodity's standard test weight:
- Soybean and wheat: 60 lb/bu → 1 MT =
36.7437bushels - Corn: 56 lb/bu → 1 MT =
39.3680bushels
Chain: cents/bu ÷ 100 = $/bu → $/bu × bu_per_MT = $/MT → × USD/INR = ₹/MT → ÷ 10 = ₹/quintal. Tick notation like 1234'4 means 1234 + 4/8 = 1234.50.
2. BMD / Euronext Converter
Crude palm oil trades on Bursa Malaysia in MYR/MT; rapeseed on Euronext in EUR/MT; sunflower oil is largely Black Sea OTC in $/MT (not a liquid Euronext contract). Each is converted with the matching FX pair: foreign price × FX = ₹/MT, then ÷ 100 = ₹/10 kg.
3. Domestic Price Normalizer
Any unit is first reduced to ₹/kg, then expanded to all units. Bag size defaults are common starting points only — they vary by mandi and are fully editable. Maund is regionally variable (≈37.32 kg standard, 40 kg in some trades).
4. Oil Price Converter
Litre conversions need density (mass per litre), which differs by oil. ₹/litre = ₹/kg × density. A 15 kg tin and a 15 L jar are different quantities of oil — the tool keeps them distinct.
5. Crush Parity Calculator
Crush is not a single "recovery %". Per quintal (100 kg) of seed:
- Oil revenue = oil yield (kg) × oil price (₹/kg)
- DOC/meal revenue = meal yield fraction × meal price (₹/qtl)
- Less processing/conversion cost (₹/qtl)
- = Implied seed value: the most you can pay for seed at zero margin
Soybean economics are meal-driven (~80% meal, ~18% oil); mustard is oil-driven (~33–40% oil). Reverse mode: enter a target margin to get the maximum payable seed price.
6. Quality Parity Calculator
Each parameter is compared to the commodity's standard spec. Oil % is bidirectional (a premium above standard, a discount below). FM is contamination (only the excess is deducted). Moisture is either a price deduction or a weight refraction — for mustard / RM seed, moisture is adjusted in weight, so weight refraction is the default. Reverse mode solves the oil % needed to hit a target price.
Data accuracy & disclaimer
Spec values are common Indian trade-standard defaults and are fully editable. Always verify against your own contract before pricing a lot. AgriParity is a calculation aid, not trading advice.