Definitions for "CRUSH SPREAD"
Keywords:  soybean, meal, simultaneous, soya, oil
A futures spreading position in which a trader attempts to profit from what he believes to be discrepancies in the price relationship between soybeans and their two derivative products.
Is the purchase of soybeans against the sale of the processed products. In futures trading, it is the simultaneous purchase of soybean futures versus the sale of soybean oil and soybean meal futures. The spread differentials reflect the potential processing margins or profitability. Here, the spread implies that the cost of the raw commodity input, soybeans, is cheap to its processed products. Compare to Reverse Crush Spread.
a type of commodity product spreading involving the purchase of soybean futures and the sale of soybean meal and soybean oil futures.