Enter Prices

$ /bu
CBOT soybean futures price per bushel
$ /ton
CBOT soybean meal futures price per short ton
$ /lb
CBOT soybean oil futures price per pound
Choose per-bushel or per-contract analysis
Board Crush Formula
Crush = (Meal x 0.022) + (Oil x 11) - Soybean
0.022 = short tons meal/bu | 11 = lbs oil/bu
Ryan O'Connell, CFA
Calculator by Ryan O'Connell, CFA

Crush Spread Analysis

Crush Spread (Gross Processing Margin) -$0.35/bu Unprofitable
Meal Value $7.70/bu
Oil Value $4.95/bu
Contract Spread -$1,750.00

Formula Breakdown

Crush Spread = Meal Value + Oil Value - Soybean Price

Margin Assessment Guide

Spread Range Assessment Interpretation
> $1.50/bu Profitable Strong processing margins
$0.50 - $1.50/bu Marginal Covers variable costs only
< $0.50/bu Unprofitable Below breakeven for most processors

Actual profitability depends on each processor's operating costs, capacity utilization, and efficiency.

Model Assumptions

  • Standard yields: 44 lbs meal (0.022 short tons) per bushel
  • Standard yields: 11 lbs oil per bushel of soybeans
  • CBOT board crush: 1 soybean contract = 5,000 bushels
  • Simplified model - does not include processing costs
  • Actual yields vary by seed quality and processing efficiency
  • Basis and transportation costs not included

For educational purposes. Gross processing margin only.

Understanding the Soybean Crush Spread

What is the Crush Spread?

The crush spread measures the gross processing margin (GPM) for converting soybeans into their two primary products: soybean meal and soybean oil. It represents the theoretical profit a processor earns before accounting for operating costs like labor, energy, and transportation.

Board Crush Formula
Crush Spread = (Meal Price x 0.022) + (Oil Price x 11) - Soybean Price
Result in $/bushel of soybeans processed

Positive vs Negative Crush

Positive Crush (Wide)

Output value > Input cost
Profitable processing conditions. Processors run at higher capacity. May signal strong demand for meal/oil or weak soybean demand.

Negative Crush (Inverted)

Output value < Input cost
Unprofitable processing. Processors may idle capacity or reduce throughput. Often temporary due to market dislocations.

When to Use This Calculator

Use this calculator to analyze soybean processing economics and understand margin dynamics. This is especially useful when:

  • Evaluating soybean processor profitability and capacity decisions
  • Trading the crush spread (long soybeans, short meal and oil)
  • Understanding relative value across the soybean complex
  • Forecasting processor demand for soybeans
Related to Crack Spread: The crush spread for soybeans is analogous to the crack spread in petroleum refining. Both measure processing margins for converting raw commodities into finished products. For oil refining analysis, see the Commodity Roll Yield Calculator.

Key Concepts

  • Board Crush: A standardized spread using CBOT futures (1 soybean vs 1 meal + 1 oil contract)
  • Meal Yield: Approximately 44 lbs (0.022 short tons) of meal per bushel
  • Oil Yield: Approximately 11 lbs of oil per bushel
  • GPM: Gross Processing Margin - the crush spread before operating costs

Video Explanation

Video: Futures Pricing and Valuation Simplified

Download This Calculator as an Excel Template Interactive model with editable formulas — customize, save, and share.
Get Excel Template

Frequently Asked Questions

The crush spread measures the gross processing margin for converting soybeans into soybean meal and soybean oil. It is calculated as the value of meal and oil output minus the cost of soybeans input. A positive crush spread indicates profitable processing, while a negative spread suggests unprofitable conditions for soybean processors.

The board crush formula is: Crush Spread = (Meal Price x 0.022) + (Oil Price x 11) - Soybean Price. This reflects standard yields of 44 lbs of meal (0.022 short tons) and 11 lbs of oil per bushel of soybeans. The result is expressed in dollars per bushel of soybeans processed.

A bushel of soybeans (60 lbs) typically yields approximately 44 lbs of soybean meal (0.022 short tons) and 11 lbs of soybean oil. These standard yields are used in the board crush calculation to convert between different price units. Actual yields vary based on seed quality, moisture content, and processing efficiency.

A crush spread above $1.50 per bushel is generally considered profitable for processors. Margins between $0.50 and $1.50 are marginal and may only cover variable costs, while spreads below $0.50 may indicate unprofitable processing conditions. However, actual profitability depends on each processor's operating costs, scale, and efficiency.

Soybean processors use crush spreads to hedge their profit margins by buying soybean futures and selling meal and oil futures. Speculators trade crush spreads to profit from changes in processing margins. A long crush position (long soybeans, short meal and oil) profits when the spread widens, while a reverse crush profits when margins narrow.

The CBOT board crush is a simplified spread trade using standard contract sizes: one soybean contract (5,000 bushels) versus one soybean meal contract and one soybean oil contract. This approximates the processing relationship and allows traders to speculate on or hedge crushing margins using exchange-traded futures. The per-contract crush value is the per-bushel spread multiplied by 5,000.
Disclaimer

This calculator is for educational purposes only and provides a simplified gross processing margin calculation. Actual processing economics involve additional factors including operating costs, basis, transportation, storage, and capacity utilization. This tool should not be used as the sole basis for trading or business decisions.

Related Calculators

Commodity futures curve showing contango and backwardation with roll yield

Commodity Roll Yield Calculator

Decompose commodity futures returns into spot, roll, and collateral components.

Try Calculator →
Professional finance illustration representing Futures Hedge Ratio Calculator: Minimum Variance Optimal Hedge

Futures Hedge Ratio Calculator: Minimum Variance Optimal Hedge

Calculate the minimum variance hedge ratio for futures contracts. Optimize hedge effectiveness using correlation and...

Try Calculator →
Professional finance illustration representing Forward Price Cost Carry Calculator

Forward Price Cost Carry Calculator

Calculate forward prices including storage costs, income yields, and convenience yields. Apply the full cost...

Try Calculator →