The formula to calculate the Soybean Crush Margin (CM) is:
\[ \text{CM} = (\text{SM} \times 0.80) + (\text{SO} \times 0.183) - \text{SB} \]
Where:
A soybean crush margin refers to the difference between the combined value of soybean meal and soybean oil produced from soybeans and the cost of the soybeans themselves. This margin is a key indicator in the soybean processing industry, reflecting the profitability of processing soybeans into meal and oil.
Let's assume the following values:
Using the formula:
\[ \text{CM} = (300 \times 0.80) + (50 \times 0.183) - 350 = -$276.85 \text{ per bushel} \]
The Soybean Crush Margin (CM) is -$276.85 per bushel.