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| Excellent question & I failed to explain...another senior moment. The benchmark average is a 15 year seasonal pattern It is the board crush 10 contracts of soybeans, 11 meal contracts & 9 Oil contracts & as illustrated is a general guide. It is a specialized trade & usually filled by a spread broker & can do the crush or reverse crush-however, sometimes there is a liquid trade (speaking from years ago experience, as I have not traded it for years) & sometimes it can be pretty thin & can easily have to give up a nickle in the back options, usually leave open resting orders. However, it is a decent guide as the products are delivered by shipping certificates & theory being when you buy beans at the processor level, you liquidate the soybean leg leaving a hedge on the products. If you recall there have been quite a few product deliveries. | |
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SOYBEANS-some facts to digest.
