How is crush margin calculated?
Crush Margin = Soybean Meal x 80% + Soybean Oil x 18.3% – Soybeans. This requires making two conversions—from bushels to metric tons and from USD to CNY. The unit of the crush margin is CNY/mt.
What is ethanol crush margin?
The crush margin measures the cost of ethanol against the cost of feedstock corn used to produce the biofuel. A simple crush margin can be calculated by dividing the cost of corn per bushel by 2.8, the number of gallons of ethanol that a bushel of corn can produce.
How do you trade spread on Crush?
A crush spread as a trading strategy involves taking a long position on soybean futures and a short position on soybean oil and meal futures. The strategy may also be a reverse crush spread which consists of taking a short position on soybean futures and a long position on soybean oil and meal futures.
What is corn crush?
The corn crush value traded in the futures market (also referred to as the corn crush) is an intercommodity spread transaction in which corn futures are bought (or sold) and ethanol and DDGs are sold (or bought).
What are the advantages of a crush?
Research shows that people with crushes often feel like they are in a real relationship, which could be a way to decrease loneliness, and may even boost our confidence. Crushes could help reinvigorate stale relationships by revealing what they are lacking, and give people insight into how to improve their love lives.
What is the price of DDGS?
Variability of DDG Prices and Other Feedstuffs The average DDG and corn prices over this period were $165 per ton and $159 per ton, respectively. These two price series are highly correlated (r = 0.824).
What is soybean crush used for?
A soybean crush spread is often used by traders to manage risk by combining separate soybean, soybean oil and soybean meal futures positions into a single position. The crush spread position is used to hedge the margin between soybean futures and soybean oil and meal futures.
How much does it cost to produce 1 gallon of ethanol?
Every time you make 1 gallon of ethanol, there is a net energy loss of 54,000 BTU.” Ethanol from corn costs about $1.74 per gallon to produce, compared with about 95 cents to produce a gallon of gasoline.
Are crushes healthy?
From a psychological perspective, it’s actually much healthierthan you might suspect to experience crushes and positive romantic or sexual feelings for someone that you don’t take action on. “Crushes are not only normal but also good for your health,” says Sex Therapist Dr.
What is the use of DDGS?
DDGs substitute roughly 1-to-1 for corn grain in feed rations. When blended into the animal feed, DDGs provide a high-protein meal that is readily available to the animals. DDGs are most commonly used in feeding cattle, dairy cows, swine, and some poultry.
Who buys DDGS?
Mexico purchased the bulk of DDGS exports, consisting of more than 18 percent of the export market, while Vietnam was the second largest importer. South Korea, Turkey and Indonesia round out the top five importers for 2020/2021.
How is soybean crush calculated?
To Calculate the Crush or GPM [(Price of Soybean Meal ($/short ton) x . 022) + Price of Soybean Oil (¢/lb) x 11] – Price of Soybeans ($/bu.) Typically, crushing activity is expanded or reduced to maintain sufficient profitability; the GPM is used to gauge the relative profitability of processing.
Are ethanol plants profitable?
Despite the unprecedented consequences of the COVID pandemic, operating ethanol plants managed an average profit of $0.02 per gallon for 2020.
When did people start saying crush?
crush (n.) 1590s, “act of crushing, a violent collision or rushing together,” from crush (v.). Meaning “thick crowd” is from 1806. Sense of “person one is infatuated with” is first recorded 1884, U.S. slang; to have a crush on (someone) is by 1903.
What do u mean by crush?
crush. noun. Definition of crush (Entry 2 of 2) 1 : an intense and usually passing infatuation have a crush on someone also : the object of infatuation. 2a : crowd, mob especially : a crowd of people pressing against one another.