Identifying possible misspecification in South African soybean oil future contracts
Date
2021-01
Authors
Nordier, Jean-Pierre
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research Consortium
Abstract
Soybean crushing¹
plants operate on a crush margin, which is the monetary difference between
the combined sales value of mainly soybean meal and soybean oil and the cost of raw soybeans.
However, given the high volatility in the prices of these three products, crushing plants
normally secure these prices simultaneously. If not, they are vulnerable to the relative price
variation between these three products.