WALSH PURE SPREADER
Pure Hedge Division
RICH MORAN 10/29/2026
MAR SOYBEANS – (2 x MAR CORN) SPREAD
[ZSH27-(2 x ZCH27)]
MAR Soybean’s (ZSH27’s) 52-week High is 1356 and its 52-week Low is 1068. Today, ZSH27 settled 1243½. That is LESS than a 40% retracement from its 52-week High this past June.
MAR Corn’s (ZCH27’s) 52-week High is 564 and its 52-week Low is 441. Today, ZCH27 settled 464¾. That is MORE than an 80% retracement from its 52-week High this past June.
I think there may be an opportunity here if the Soybeans and Corn realign themselves after these retracement differences. I am looking at a spread of 1 (one) MAR Soybeans minus (-) 2 (two) MAR Corn because the Soybeans are more than twice the price of the Corn. This is ZSH27-(2xZCH27). Please see the chart above. This spread will generally trade somewhere around 90 to 190, but there are no limits in terms of how wide or narrow it can trade. Today it settled at 314, just above the 14-day and 21-day moving averages. It has been riding on top of these moving averages for the last couple months, but seems like it might be topping off. I think if ZSH27-(2xZCH27) can trade and settle below the 14-day and 21-day moving averages we could have a good risk reward trade by getting short at that point with a quick stop a little above these moving averages.
If ZSH27-(2xZCH27) doestrade and settle below both the 14-day and 21 day moving averages, and you are able to get short the spread below these moving averages, but within a few cents of them:
I suggest risking 30 ($1,500) Per Spread to make 100 ($5,000) Per Spread, plus fees and commissions.
If and when the spread goes 30 in your favor, I suggest you move your stop to where you got short the spread for a scratch. I hate to turn a winner into a loser.
If you have any thoughts/questions on this article, or any questions at all in regard to the commodities futures markets, please use this link Sign Up Now
Rich Moran
Senior Commodities Broker
Direct: (312)985-0298
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involve substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.