Calculate soybean crush margin per bushel from soybean meal, oil, and soybean prices, or estimate total margin from futures and bushels.

Conventional yield per 60 lb soybean bushel: 44 lb meal and 11 lb oil. Gross spread excludes processing, freight, basis and other costs; it is not net profit. Use consistent USD prices and compatible quote periods.

Soybean Crush Margin Formula

The following equation is commonly used to estimate the “board crush” margin per bushel using standard futures units (meal in $/short ton, oil in cents/lb, soybeans in $/bushel).

CM = SM × 0.022 + SO × 0.11 - SB
  • Where CM is the soybean crush margin ($/bushel)
  • SM is the soybean meal price ($/short ton)
  • SO is the soybean oil price (cents/lb)
  • SB is the soybean price ($/bushel)

What is a Soybean Crush Margin?

Definition:

The gross crush margin is soybean meal and oil value minus soybean cost, using stated yields. This conventional board-crush formula assumes 44 lb meal and 11 lb oil per 60 lb soybean bushel. Futures prices produce a board spread; processing costs, basis, actual yields and other adjustments determine eventual processor profit. Long meal and oil with short soybeans is one trade direction, commonly called the reverse crush.

How to Calculate Soybean Crush Margin?

Example Problem:

The following example outlines the steps and information needed to calculate Soybean Crush Margin.

First, determine the soybean meal price. In this case, the soybean meal is being traded at $340 per short ton.

Next, determine the soybean oil price. For this example problem, the soybean oil is being traded at 44 cents per pound.

Next, determine the soybean price. For this example, the soybean is being traded at $10.20 per bushel.

Finally, calculate the crush margin using the formula above:

CM = SM * 0.022 + SO * 0.11 – SB

CM = 340 * 0.022 + 44 * 0.11 – 10.20

CM = 7.48 + 4.84 – 10.20

CM = $2.12/bushel