Crush margins

About 98% of all soybean meal is used for livestock feed (Fig. 5.24). Feed utilization levels dip slightly during the summer when crush margins are at their worst and processors market soy protein to the higher valued soy food sector. 

Fig. 5.26. U.S. daily crush margin 1996-2007. Source Barchart.com, 2007 and author s calculations.

Table 5.1. Crush Margin Percentages Involving Soybean Meal and Soybean Oila°...

Month-to-month variability in prices and the level of correlation among prices are primary sources of uncertainty for processors. Soybean oil prices are 60% more variable from month to month than soybean meal, and 20% more variable than soybeans. Oil, though, impacts crush margin less than meal or soybeans because it is a small component of processing output. 

Fig. 21.20. Average crush margins in Brazil (1998-2006) (Source ABIOVE, 2007 author s calculations).

Table 21.3. Statistical Relationships Between Soybeans, Meal, Oil, and Crush Margin in Brazil (1998-2006)...

Fig. 21.23. Average monthly crush margin range (1998-2006)(Source IBGE, 2007).

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