WALSH PURE SPREADER - Pure Hedge Division –
WALSH PURE SPREADER
- Pure Hedge Division –
Rich Moran 9/12/2025
JAN-MAR-MAY Soybean Oil Butterfly (ZLF26:H26:K26)
Today we are looking at the JAN-MAR-MAY Soybean Oil Butterfly (ZLF26:H26:K26). We calculate this by finding the difference between the JAN-MAR Soybean Oil Spread (ZLF26-ZLH26) and the MAR-MAY Soybean Oil Spread (ZLH26-ZLK26).
Today ZLF26-ZLH26 settled -.34 and ZLH26-ZLK26 settled -.14 . So, the butterfly settled -.20 (-.34 minus -.14).
Full Carry for JAN-MAR Soybean Oil is .86. Full Carry for MAR-MAY Soybean OIL is .89. So Full Carry for these two are almost the same. The exact difference is -.03 (.86 minus .89).
Since matching its 52-week high of +.12 on May 1st, this butterfly had a strong downward trend until it hit a 14-day low, and at the time a 52-week low, of -.22 on August 14th. Since then, it has basically traded sideways between -.23 and -.16 .
This is purely a Full Carry Comparison trade suggestion …. I suggest trying to get long the ZLF26:H26:K26 butterfly on Monday at today’s settlement of -20 or better (buying the JAN-MAR Soybean Oil spread .20 below where you sell the MAR-MAY Soybean Oil spread).
Risk 5 tics (~-.25) or $30 Per Spread to make 20 tics (~00.00) or $120. Per Spread, plus fees and commissions.
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Following up on the still active past trade ideas:
- 9/10/25: ZCZ25-ZCH26 (DEC-MAR Corn Spread)
Today’s settlement: -17¼, Long at -17½
Today, ZCZ25-ZCH26 spread settled at -17½, the high of the day. This is just above both the 14-day and 21-day moving averages.
On Wednesday (9/10/25) I suggested that if the ZCZ25-ZCH26 opens at -17½ (Wednesday’s settlement) or higher, trying to get long the spread (buying Dec-Corn versus selling Mar’26-Corn) at -17½. We will use a short stop just below the 52-week low of -18¾.
The spread opened at -17½ and traded lower, so we are long at -17½.
On Wednesday I said that if are able to get long at -17½:
Risk 2 cents (-19½) or $100 Per Spread to make 6 cents (-11½) or $300 Per Spread, plus fees and commissions.
- 9/5/25: LEV25-HEV25 (OCT Live Cattle-OCT Lean Hogs)
Today’s settlement: 132.850, Short at 139.900
On Friday (9/5) I suggested trying to get short the LEV25-HEV25 Spread at 139.900 or better on Monday. We were able to sell the spread at 139.900 om Monday.
Risking 6.000 (145.900) or $2,400 Per Spread to make 18.000 (121.900) or $7,200 Per Spread, plus fees and commission.
Today, let’s move our stop down to our entrance price of 139.900 for a scratch. I never like to turn a winner into a loser.
- 9/3/25: ZMZ25-ZMH25 (DEC-MAR Soybean-Meal Spread)
Today’s settlement: -8.7, Long at -10.2
On Wednesday (9/3/25) I suggested trying to get long the ZMZ25-ZMH25 Spread at Wednesday’s settlement of -10.2 or better when the market reopened for Thursday market. The opening was -10.2 and it traded -10.3, so we are long at -10.2.
We are risking 1.3 dollars (-11.5) or $130 Per Spread to make 5 dollars (-5.2) or $500 Per Spread, plus fees and commissions.
Today, let’s move our stop down to our entrance price of -10.2 for a scratch. I never like to turn a winner into a loser.
- 8/27/25: ZSF26-ZSN26 (JAN-JULY’26 Soybean Spread)
If we can get back above and settle above the 14-day and 21-day moving averages, I think we should try buying the spread with a short stop below these moving averages.
Today, we settled even with 14-day moving average and just below the 21-day moving average.
- 8/6/25: ZSX25-ZSF26 (NOV-JAN Soybean Spread)
Today’s Settlement: -19, Long at -17½
The spread settled above the 14-day and the 21-day at -17¾ on 8/21/25. You should be long at -17½ from the open on 8/22/25.
Risking 3½ cents (-21) or $175 to make 9 ½ cents (-8) or $475
- 7/23/25: ZWZ25-ZWH26 (DEC’25-MAR’26 Wheat Spread))
Today’s Settlement: -17½, Long at -18½
Risking 3½ cents (-22) or $175 Per Spread to make 10 cents (-8½) or $500 Per Spread, plus fees and commissions.
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Rich Moran
Senior Commodities Broker
Direct: (312)985-0298
Cell: (773)502-5321
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
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