Soybean Crush Spread
Long soymeal and soyoil versus short soybeans (or the reverse) — the processor’s margin as a futures spread.
Definition
The crush is the value of products minus the bean. CTAs trade it as a ratioed spread (standard exchange crush or a custom hedge ratio). Seasonality (harvest vs crush demand) and China import news move it. It is not a bean directional in disguise if the ratio is kept honest.
Why it matters
It is the textbook ag RV. Specialists run it; diversified trend often only sees the three outrights and double-counts the complex.
Case
A product-side demand shock (meal) with beans unchanged. The crush is the trade; a bean-only trend book misses the structure.
How to read it
Ratio, months, and whether they let the spread run through USDA days. Crush is an event book as much as a trend book.