Business and Personal Finance Dictionary

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• CRUSH SPREAD
  
  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.
  
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