Business and Personal Finance Dictionary

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• REVERSE CRUSH
  
  Is the sale of soybeans against the purchase of the processed products. In futures trading, it is the simultaneous sale of soybean futures versus the purchase of soybean oil and soybean meal futures. The spread differentials reflect the potential processing margins, profitability, or loss. Here, the spread implies that the cost of the raw commodity input, soybeans, is relatively rich or expensive to its processed products. In fact, it suggests that it is economic to buy the products and sell the input. If this spread relationship persists, then crushers or processors may reduce or cease production because it would be at a loss. Compare to Crush Spread.
  
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