A commodity trading strategy that is used in the soybeans futures market and involves the purchase of soybean futures and the sale of soybean oil and soybean meal futures. This spread is in essence a processing spread that aims to take advantage of any relative mispricing opportunities in such a futures market. Processors employ this hedging strategy to hedge the later purchase price of soybeans and the later sale price of soybean oil and soybean meal (both soybean byproducts). The term “crush” implies the process of crushing the soybeans in vats to produce oil and meal.
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