WALSH PURE SPREADER
Pure Hedge Division
RICH MORAN 5/14/2026
DEC-MAR SOYBEAN OIL SPREAD (ZLZ26-ZLH27)
I still believe that the Soybean Oilshare will continue to increase over the next year or so. I like buying the Soybean Oil market through Soybean Oil Spreads. There isn’t anything that is always in the commodity futures markets, but generally, in the grain markets, the front months lead the way and the spreads are usually directional. The spread that has caught my eye is the DEC-MAR Soybean Oil Spread (ZLZ26-ZLH27). This gives us plenty of time to follow the Soybean Oil market looking and waiting for opportunity(s) to enter and exit this trade.
Soybean Oilshare is the value of the Soybean Oil verses the combined value of the Soybean Oil and the Soybean Meal after crushing a bushel of soybeans. Historically, Soybean Meal has usually been the more valuable part of the crush, but recently the Soybean Oilshare has gotten above 50%.
Soybean Oil was predominantly used as an edible oil. It is also used as a biofuel with recent environmental mandates and incentives increasing this use of Soybean Oil to help reduce one’s carbon footprint. Soybean Oil is regarded as a renewable energy with less greenhouse emissions, reducing potential global warming and climate change.
According to this week’s WASDE Report, “U.S. soybean crush for 2026/27 is projected at 2.750 billion bushels, up 120 million from the 2025/26 forecast on favorable crush margins and a strong demand for soybean oil as a biofuel feedstock.” This is another reason I like the December 2026 vs. March ’27 spread. This week’s WASDE Report also forecasts that the total U.S. Soybean Oil demand will increase by 7% in 2026/27. This is in part due to the strong Soybean Oil demand as a biofuel feed stock. As a result of the EPA’s Renewable Volume Obligations for 2026/27, the use of soybean oil as a biofuel is up 3.6 billion pounds to 17.8 billion.
I am suggesting, that when the market opens this evening, buy the DEC-MAR Soybean Oil Spread (ZLZ26-ZLH27) the best you can.
Risk 0.50 (½ cent) or $300 Per Spread to make 1.50 (1½ cents) or $900 Per Spread, plus fees and commissions.
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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.
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