WALSH PURE SPREADER
Pure Hedge Division
RICH MORAN 9/15/2026
DEC CORN-OATS SPREAD (ZCZ26-ZOZ26)
The grain markets have obviously been very strong lately. The Corn, Wheat and Soybean markets have all made new 52-week highs this month. All three of these markets have been trending higher since June of this year.
It appears that the Oats market, which is a much smaller market, may have been pulled up by the other larger grains. As the larger grains have been hovering near their highs, the Oats market is still only trading near the 50% retracement off its lows. Oats may currently still have more room on the upside than the larger grains like Corn. Also, there has been a recent annual pattern of Oats acreage being decreased, resulting in tighter supplies. This could possibly also help Oats maintain its strength relative to the bigger grain markets.
On Thursday (September 10th) the DEC Corn-Oats Spread (ZCZ26-ZOZ26) settled below both the 14-day and 21-day moving averages for the first time in a month. It then settled below both moving averages again on Friday (September 11th). And it has not traded or settled above the 14-day or 21-day this week (the 14th or 15th).
Because of the possible upside potential the Oats market may have, in comparison to the Corn market, and the fact that ZCZ26-ZOZ26 now finds itself fluttering below both the 14-day and 21-day moving averages, I think shorting this spread might be a good risk/reward trade.
I am suggesting that when the market opens this evening, try to sell DEC Corn-Oats Spread (ZCZ26-ZOZ26) at 149¾. This is 5 cents above where it settled today, but still nicely below the 14-day and 21-day moving averages. If you are not able to sell it there on the open, leave a resting (GTC) offer in at 149¾.
If you are able to sell this spread, risk 20½ (price of 170¼) or $1,025 Per Spread, to make 39½ (price of 110¼) or $1,975 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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