CHICAGO, June 10 Investment bank Goldman Sachs
said on Monday it recommended exiting short Chicago Board
of Trade soybean crush spread positions based on it latest
In a note to clients, Goldman said the current value of the
CBOT July soy crush spread was 3 cents a bushel, versus 47 cents
on April 10, the day it recommended the trade, equating to a 44
The soybean crush spread - buying (or selling) Chicago Board
of Trade soybean futures contracts and simultaneously selling
(or buying) CBOT soymeal and soyoil contracts - is a popular
trade to capture the profit of crushing soybeans into soymeal
Goldman had recommended in April shorting the spread -
buying soybeans and selling meal and oil.
Goldman also expects the CBOT August crush margin to decline
from its current level of 25 cents a bushel "especially as the
U.S. new-crop soybean harvest will likely be delayed this fall,"
the note said.
The U.S. Department of Agriculture reported late Monday that
U.S. farmers had planted 71 percent of their intended soy acres
as of Sunday, down from the usual pace of 84 percent by the
first week of June.