Crush Margin

$0.94/bu

Bullish — profitable crush, plants running near capacity

Soybean Oil

42.8¢/lb

National weekly avg — USDA AMS report 3511

Soybean Meal

$312/ton

48% protein, national weekly avg

Iowa Soy Basis

−$0.22/bu

vs. November futures — USDA AMS cash bids

The Crush Formula

The "gross processing margin" (GPM) per bushel of soybeans crushed. Wide margins = plants buy more beans. Narrow or negative margins = plants slow purchases.

Soy Oil Revenue = 42.8¢/lb × 11 lbs/bu = $4.71/bu Soy Meal Revenue = $312/ton ÷ 2,000 lb/ton × 44 lbs/bu = $6.86/bu Total Co-Product Revenue = $11.57/bu Less: Cash Soybean Price = $10.63/bu Crush Margin = $11.57 − $10.63 = $0.94/bu

Yield assumptions: 11 lbs soybean oil + 44 lbs of 48% soybean meal per bushel crushed (USDA standard conversion). Processing cost not deducted — this is gross margin.

Crush Margin Signal Guide

Above $1.50/bu — Strongly Bullish: Wide crush margins. Crush plants are running at full capacity, bidding aggressively for soybeans. Strong fundamental support for cash prices.

$0.80–$1.50/bu — Bullish: Profitable crush supporting solid processor demand. Plants have incentive to expand crush runs. Positive for soybean price outlook.

$0.30–$0.80/bu — Neutral: Normal margins. Plants operating near breakeven. Neither accelerating nor throttling bean purchases. Watch the direction of change more than the level.

$0.00–$0.30/bu — Slightly Bearish: Narrow margins limit incentive to expand crush runs. Plants may begin to slow purchases or become more selective on origin.

Below $0.00/bu — Bearish: Negative crush. Processing plants lose money on every bushel and will slow or halt discretionary soybean purchases. Significant price headwind.

Crush Components: What Moves the Margin

Component	This Week	Impact on Margin	Key Driver
Soybean Oil	42.8¢/lb	$4.71/bu revenue (11 lbs × price)	Biodiesel policy (RFS, LCFS), palm oil prices, food demand
Soybean Meal	$312/ton	$6.86/bu revenue (44 lbs × price/ton)	Livestock feeding demand, hog/poultry inventories, Argentina meal exports
Cash Soybeans	$10.63/bu	Primary cost — subtracted from co-product revenue	CBOT futures, South American supply, China buying pace, weather
Processing Cost	~$0.60/bu	Not shown — deduct from GPM for net margin	Natural gas (steam), labor, capital costs at plant

Soybean Oil: The Wildcard

Since 2021, renewable diesel policy has transformed soybean oil from a sleepy commodity into the dominant crush margin driver. When oil prices spike, crush runs hard regardless of meal demand.

Soy Oil Price	Oil Revenue/Bu	% of Total Co-Product Revenue	Policy Signal
30¢/lb	$3.30	~37%	Weak RD demand, no premium
40¢/lb	$4.40	~42%	Normal RD blending
50¢/lb	$5.50	~47%	Strong RD policy support
60¢/lb	$6.60	~52%	Exceptional — RD capacity crunch

How the Crush Margin Affects Your Elevator Bid

The cash basis at your local elevator is directly tied to how hard processors want to buy. A $0.50 expansion in crush margin typically translates to a 10–20¢ basis improvement as plants compete for beans.

Crush Margin Trend	Processor Behavior	Expected Basis Impact
Expanding — up $0.30+/bu over 2 weeks	Booking forward deliveries, bidding up cash	Basis narrows (improves) 10–20¢
Stable $0.50–$1.00	Steady buying, normal operating pace	Basis flat, seasonal adjustments only
Contracting — down $0.30+/bu	Reducing purchases, buying only spot needs	Basis widens (weakens) 10–20¢
Negative crush	May idle capacity, buying only contracted tons	Basis widens sharply — sell nearby if possible

Data Sources

Data Point	Source	Update Frequency	Report ID
Soybean Oil (¢/lb)	USDA AMS MARS — National Grain & Oilseed Processor Feedstuff Report	Weekly (Thursday)	3511
Soybean Meal ($/ton)	USDA AMS MARS — National Grain & Oilseed Processor Feedstuff Report	Weekly (Thursday)	3511
Cash Soybeans ($/bu)	USDA AMS MARS — Iowa Daily Grain Report	Daily	2850
Crush Margin ($/bu)	GrainBrief derived — computed weekly after Thursday USDA AMS release	Weekly (Thursday evening)	—

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Related Grain Market Signals

Ethanol Crush Margin CFTC COT Report USDA Export Sales WASDE Report Drought Monitor Export Inspections

Frequently Asked Questions

What is the soybean crush margin?

The soybean crush margin — also called the gross processing margin (GPM) — measures the profitability of crushing raw soybeans into soybean oil and soybean meal. It's calculated as: (oil revenue + meal revenue) minus the cash cost of soybeans. A positive margin means processors profit; a negative margin means they lose money on each bushel crushed.

Why does the crush margin matter to farmers?

Soybean processors (Bunge, ADM, Cargill, Louis Dreyfus) are the primary demand driver for soybeans in the US. When crush margins are wide, they run plants at capacity and bid aggressively for beans — tightening basis and lifting cash prices. When margins collapse, they slow purchases and basis widens. Tracking the crush gives you a 1-2 week read on where elevator bids are heading.

How often does GrainBrief update the crush margin?

GrainBrief pulls USDA AMS soybean oil and meal prices every Thursday evening after the National Grain & Oilseed Processor Feedstuff Report (report 3511) is released. Cash soybean prices are updated daily from USDA AMS Iowa grain reports. The crush margin is recomputed and published by Thursday evening each week.

What's the difference between the ethanol crush and the soybean crush?

The ethanol crush margin tracks the profitability of converting corn into ethanol and distillers dried grains (DDG). The soybean crush margin tracks soybean processing into oil and meal. Both signal processor demand for their respective feedstock (corn or soybeans) and are key inputs for commodity price outlook.

Soybean Crush Margin