Crush Spread

A trading strategy used in the soybean futures market to establish a processing margin.


By simultaneously purchasing soybean futures and selling soybean meal futures, a trader is attempting to establish an artificial position in the processing of soybeans, created through the spread.



Futures Fundamentals - For those who are new to futures but want a solid understanding of them, this tutorial explains what futures contracts are, how they work, why investors use them, and much more.
Related Terms

Bear Spread

Commercial

Crack

Crack Spread

Delivery Instrument

Delivery Month

Intercommodity Spread

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