Soybean processing

[TraDaToR]

Hello,

Do you know how much time it takes to processors to crush soybeans into oil and meal?

Thanks a lot.

 

[nokomisjeff]

Not very long.

 

[TraDaToR]

Back to this topic, I would like to know if commercials are always playing same expiration for soybean and products. Are they always playing Mar/Mar/Mar, Aug/aug/Aug, Nov/dec/dec...? They never buy Soy in Mar to to deliver products in october for example... I am asking for known industry crush practices.

Thanks a lot.

 

[dafeeder]

I wonder if commercials even worry about hedging their crush most of the time as they probably have a lot of what they are crushing spoken for.

http://www.soyinfocenter.com/HSS/soybean_crushing1.php

 

[ogarbitrage]

Quote from TraDaToR:

They never buy Soy in Mar to to deliver products in october for example...

Why are you assuming that is the case? If storage and interest costs were low enough to warrant storing beans and crushing them in 6 months, there would be no rational not to take advantage.

The typical structure you're looking for is front+1 crush spread. Same for the crude crack - one month processing time.

 

[TraDaToR]

Quote from ogarbitrage:

Why are you assuming that is the case? If storage and interest costs were low enough to warrant storing beans and crushing them in 6 months, there would be no rational not to take advantage.

The typical structure you're looking for is front+1 crush spread. Same for the crude crack - one month processing time.

It was a question in fact. I forgot the "?". Thanks for the info.