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28.12.2009The poor man's spread is simply a 1:1:1 ratio. A crush spread would therefore involve going long one soybean contract, short one meal contract and short one oil contract. The proper ratio however is 11:9:10. That is 11 soy meal, 9 oil and 10 soybean contracts. The margin discount for this ratio is significant, at 90 %. Trading the Spread
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Chapter 16 The Soybean Crush
Now to get the spread right, you need to buy soybeans and sell oil and meal in the correct proportions to mimic the business of crushing soybeans. Recall, 1 bushel of soybeans equals 11 lbs of oil and 44 lbs of meal.
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30.04.2022A crush spread is an options trading strategy used in the soybean futures market. The general term for this is a gross processing margin. A soybean crush spread is often used by traders to
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The CRUSH study is similar to the CRACK spread used for crude oil. Soybeans are the raw material used to produce bean oil (BO) and soymeal (SM). However, the ratio for this spread is 1:1:1. One bushel of soybeans produces one unit of soymeal and one unit of bean oil. The products soybeans produce are measured in liquid and dry weights.
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Chapter 18 Cattle Markets and the Livestock Crush
Since once futures contract is 5,000 bushels, an 8-4-2 spread is often used: 8 contracts Live Cattle, 4 contracts Feeder Cattle, and 2 contracts futures. This spread hedges approximately 266 animals placed at 750 lbs, marketed at
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