FVA English to Arabic Other Agriculture

The soybean crush margin, as you know, is the difference between the value of the oil and meal produced from the soybeans and the cost of the soybeans. Soybean processors can control the margin to some extent by varying the rate of soybean purchases and the rate of processing. For example, if meal and oil prices are low and crush margins are small, processors could reduce the crush and the smaller supply of meal and oil would increase the price of those products. Processors cannot completely control the margin since there are a number of processors and the industry is very competitive.

To determine the crush margin on a unit of soybeans, we
take the % value of the products and subtract the value
of the soybeans:
Crush Margin =
Soybean Meal x 80% + Soybean Oil x 18.3% - Soybeans
(Some market participants have been known to use 20%
for the oil share to make calculations easier.)