For those interested I hold a weekly livestock webinar on Tuesdays. My next webinar will be Tuesday, September 22, 2026, at 3:15 pm. If you cannot attend live a recording will be sent to your email upon completion of the webinar.
With funds long Beans and Corn as we head into the US/ China meet and greet and harvest time up and coming, we look for a potential liquidation phase to occur. Our expectations are for a buy the rumor and sell the fact for the US/ China meeting as trader hopes for increased trade has taken futures to lofty levels. We have high level meetings upcoming and then the big one with the President and the Chinese leader. When this ends, we should have harvest going strong. The lead-up and hope phase is over and harvest is here. We have the end of the month and then the mid-terms. All signs for potential position lightening. We’ll see…
Trade Strategy:
March 27 soybeans Aggressive
Buy the 12.00 puts for 8.4 cents.
Sell the 11.90/12.00 call spreads for 8.4 cents.
Cost to entry even money
Floor under 12.00 soybeans until late February
Max risk $500 plus commissions and fees.
Margin $452.00
Conservative
Buy the May 2027 1150 puts for 5 cents
Cost and risk is $250 plus commissions and fees
March 27 Corn
Buy the March 5.00 puts
Sell the 4.90/5.00 call spread
Collect 1 penny or $50 upon entry less commissions and fees.
Floor under 5.00 corn until late February
Max risk is $450.00 plus trade costs and fees,
Margin -$440.00
Conservative
Buy the May 480 2027 puts for 6 cents.
Cost and risk is $300 plus commissions and fees.
Cattle Trade:
February 2027 Live Cattle Options Strategy
Sell the February 2027 Live Cattle 250/230 put spread at 17 cents.
- Premium collected: $6,800, less commissions and fees
- Maximum risk: $1,200, plus commissions and fees
- Margin requirement: $1,104
- Risk management: Consider limiting risk to 200 points ($800) plus commissions and fees
- Profit objective: Work a bid to buy back the spread at 7 cents
- Potential gain: Approximately $4,000, less commissions and fees
**Call me for a free consultation for a marketing plan regarding your livestock needs.**
Ben DiCostanzo
Senior Livestock Analyst
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109
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