In this article, We learn about "Crush Spread".Let's Go!
Crush Spread refers to the process of converting soybeans into soybean meal and soybean oil by-products.
The price difference ratio is to buy 10 soybean contracts, sell 11 soybean meal contracts and 9 soybean oil contracts (10:11:9).
This price difference represents the gross profit margin of soybean processors.
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