reverse crush

Reverse Crush

A commodity trade in which one sells soybean futures at the same time one buys futures in soybean mean and soybean oil. Reverse crushes are useful because they can take advantage of price spread between the underlying soybeans and products that can be derived from soybeans. See also: Crush.

reverse crush

A combination commodity trade in which soybean meal and oil futures are purchased and soybean futures are sold. Compare crush.
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When the margin is less than the cost, the hedge is called a reverse crush.
The reverse crush allows the processor to make back the cost of crush.
Soybean Processor Reverse Crush Hedge September 1, November soybeans at $5.