Soybean processing

Hello,

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

Thanks a lot.

 

Not very long.

 

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.

 

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

 

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.