Definition of carry out and crush

SLAL

Senior Member
FARSI
Hello

What do the bold parts mean?

The USDA report was neutral/bearish soybeans as big old crop exports partially offset surprisingly bigger new crop production.
The 15/16 carryout reduced to 255 mbu by increasing crush 10 mbu and exports by 85 mbu.

Many thanks
 
  • bennymix

    Senior Member
    https://www.nass.usda.gov/Education_and_Outreach/Understanding_Statistics/pub1554.pdf

    carryout
    Harvesting Crop Production Reports | Investopedia

    The Concept of Carryout
    The most important number that the USDA issues on its monthly Crop Production reports is the carryout estimate. Carryout (also referred to as "ending stocks") is the amount of grain left over after all demand has been satisfied. In essence, carryout equals supply minus demand. A low carryout will generally lead to high prices, while a high carryout will lead to low prices. Several different factors affect the carryout estimates issued by the USDA, as supply and demand are themselves influenced by various factors.


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    --
    crush

    Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
    National Agricultural Statistics Service NASS
    This is an archive and email subscription service for reports issued by NASS. [...]


    Description:

    Current Agricultural Industrial Report. Monthly crush and production of crude oil for selected States and the U.S. U.S. production and consumption of selected fats and oils products for edible and inedible uses. U.S. end of month stocks for selected fats and oils.

    Fats and Oils: Oilseed Crushings, Production, Consumption and Stocks
     

    goldenband

    Senior Member
    English - American
    These terms were unfamiliar to me, but after a quick trip to Google, I found the same link as bennymix for "carryout".

    Meanwhile, I'm guessing "crush" is short for "crush spread":

    Crush spread - Wikipedia, the free encyclopedia

    "The crush spread is the difference between the combined value of meal and oil and the value of the original soybeans. The crush spread is a gauge of the soybean processor's profit margin, or the gross processing margin from crushing soybeans."
     

    SLAL

    Senior Member
    FARSI
    The two sentences are quoted from a monthly report which is e-mailed to us by our European partner.
     

    bennymix

    Senior Member
    I'm no expert on the USDA or oils, but I don't think 'crush spread' applies here, since 'crush' is qualified in millions of bushels (mbu). My opinion.

    These terms were unfamiliar to me, but after a quick trip to Google, I found the same link as bennymix for "carryout".

    Meanwhile, I'm guessing "crush" is short for "crush spread":

    Crush spread - Wikipedia, the free encyclopedia

    "The crush spread is the difference between the combined value of meal and oil and the value of the original soybeans. The crush spread is a gauge of the soybean processor's profit margin, or the gross processing margin from crushing soybeans."
     

    goldenband

    Senior Member
    English - American
    ^You're clearly right, and it's more straightforward than what I'd thought: the "crush" is the process itself on which "crush spread" is based.

    In other words, "carryout" (soybean supply in excess of demand) was lowered by increasing "crush" (processing soybeans into meal and oil) by 10 mbu.

    How processing the soybeans allowed them to find buyers for 10 mbu more product, I don't know -- but that seems to be the meaning.
     
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