reverse crush

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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.
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reverse crush

A combination commodity trade in which soybean meal and oil futures are purchased and soybean futures are sold. Compare crush.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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Reverse crushes are used when the net crush margin is less than the cost of crush.
Soybean crush hedges are more certain to protect crush margins than reverse crushes. Why?