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[(Price of Soybean Meal ($/short ton) x .022) + Price of Soybean Oil ( /lb) x 11] – Price of Soybeans ($/bu.) Typically, crushing activity is expanded or reduced to maintain sufficient profitability; the GPM is used to gauge the relative profitability of processing. When the processing margin exceeds processing costs, crushers will

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Steps: In August 2019, the crusher creates hedges (short hedger) against a decline in sunflower oil market prices by selling 25kt metric tonnes equivalent of Black Sea Sunflower Oil FOB December futures at a price of $750/tonne, thereby locking in their FOB sale price at

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spread between input costs and the output sale price. For a typical feedlot, the two primary inputs are feeder cattle and corn while the output is live cattle, which are sent to market once the feeding process ends. The long crush trade combines taking a long position in feeder cattle and corn with corresponding short positions in live cattle

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crusher could consider putting on a crush by buying November CBOT Soybeans and selling January DCE Soybean Meal and Soybean Oil. They will initiate the hedge in May, lift the CBOT Soybean portion of it in October when they price the Soybeans in the US, and lift the DCE product potion in December, when they sell the Soybean Meal and Soybean Oil

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