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crush spread

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Financial Dictionary

Crush Spread

A trading strategy used in the soybean futures market to establish a processing margin.

Investopedia Commentary

By simultaneously purchasing soybean futures and selling soybean meal futures, a trader is attempting to establish an artificial position in the processing of soybeans, created through the spread.

Related Links

Futures Fundamentals

See also: Bear Spread, Commercial, Crack, Crack Spread, Delivery Instrument, Delivery Month, Intercommodity Spread

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