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Soybean Crush Futures

Normal Daily Settlement Procedure

The Soybean Crush (SOM) settlements are derived using the individual settlements from the respective Soybean (ZS), Soybean Meal (ZM), and Soybean Oil (ZL) contracts.

Soybean Crush Calculation

This example shows how the Soybean Crush is calculated using the formula:

(Price of Soybean Meal ($/short ton) x .022 + Price of Soybean Oil (¢/lb) x .11) - Price of Soybeans ($/bushel)

 

Soybean Meal Futures ($/short ton) x .022

+

Soybean Oil Futures ( ¢/lb ) x .11

-

Soybean Futures ($/bushel)

=

Soybean Crush ($/bushel)

Calculating the Crush

If, for example, August Soybean Meal, Soybean Oil and Soybean futures settlements were 297.20 $/short ton, 33.40 ¢/lb, and 9.565 $/bushel, respectively, then the August Crush would be calculated as (297.20 x .022) + (33.40 x .11) – 9.565 = $.6474/bushel.

This calculation is then rounded to the nearest $.0025/bushel and displayed in eighths, the same way as Soybean futures quotes, to derive a settlement. For the example above, the settlement price of the August Soybean Crush would be 64’6 (.6474 rounded to .6475 or 64 ¾ cents).

Final Settlement Calculation for Expiring Contract

CME Group staff determines the final settlement of the expiring Soybean Crush (SOM) contract by following the regular daily calculation for the Soybean Crush.

Additional Details

On the day of the Soybean Crush (SOM) expiration, assuming that all three underlying contracts expire as well, the crush settlement will be based on the 12:01 PM CT final settlement price of all three contracts. If any of the underlying contracts in the crush do not expire, the normal 2:00 PM CT settlement price will be used for that respective underlying contract in the crush calculation.

The Soybean (ZS), Soybean Meal (ZM), and Soybean Oil (ZL) contracts that make up the Crush are physically delivered upon expiration. For additional details on delivery, please see the CBOT Rulebook.


If you have any questions, please call the CME Global Command Center.


Note: In the event the aforementioned calculations described in this advisory cannot be made or if CME Group staff, in its sole discretion, determines that anomalous activity yields results that are not representative of the fair value of the contract, the staff may determine an alternative settlement price.