3.4.2.1. Soybean Crush Spread
The soybean crush spread is a common processing spread. The name derives from the practice of crushing soybeans to extract the oil and manufacture the meal. The soybean crush spread is a synthetic futures contract consisting of three legs. A buyer of a soybean crush spread will be long 10 soybean futures contracts, short 11 soybean meal contracts, and short 9 soybean oil contracts. This soybean crush synthetic futures contract is offered on CME and has a contract size of 50,000 bushels.
A crush may take other shapes as well, by acquiring each of i