WALSH PURE SPREADER - Pure Hedge Division
RICH MORAN 7/18/2025
WALSH PURE SPREADER
-Pure Hedge Division-
DEC-MAR SOYBEAN OIL SPREAD (ZLZ25 – ZLH26)
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I have been looking at the Soybean Oil Spreads and they have recently been pretty strong. In particular, a few weeks ago, I had suggested trying to get long the AUG-DEC Soybean Oil Spread (ZLQ25-ZLZ25) at negative (-)0.50 cents (-½ cent). Then I suggested moving that price up to -0.40 cents and that got away as well. I chased and missed out! Today that spread settled positive (+)0.23 cents. At this point, I would recommend pulling any resting bids you may have in that spread.
While some of these Soybean Oil Spreads have been strengthening, the DEC-MAR Soybean Oil Spread (ZLZ25-ZLH26) spread may just be a little late to the game and looks like it might be catching some momentum. It had been fluttering around even (00.00), trading between -0.06 and +0.09 after it got above and stayed above the 14-day and 21-day moving averages last Friday (7/11). Yesterday, it popped up to +0.17 cents and settled there. Today it opened up right near there at +.16 and traded between +0.14 and +0.27, settling at +0.19.
As long as this spread (ZLZ25-ZLH26) stays above the 12-day and 21-day moving averages, we may be safe staying long. Historically, these spreads do spend a lot of time in positive territory.
I suggest getting long at +0.15 cents ….
Risk 0.30 cents or $180 Per Spread to make 0.90 cents or $540 plus fees and commissions
Following up on some past trade ideas:
- 7/18/25 (6/20/2025): ZCU25-ZCZ25 - Today’s Settlement - 19¼
(SEP-DEC’25 Corn Spread) -Still like out shorts at -17½ risking 3½ tics to -14 to make 8.5 tics at -26.
- 7/11/2025: ZSQ25-ZSX25 – Today’s Settlement: -8
(AUG-NOV’25 Soybean Spread) – If you are already/still short the spread, I suggest holding on them as long as they stay below the 14-day and 21-day moving averages. Also, if they get back to your entry level, get out at a scratch. I don’t like turning winners into losers. If you are still short at around +2.5, I would be looking to buy them back at around -15.5 for an 18 cent or $900 Per Spread winner.
- 7/9/2025: (LEG26x2)-GFQ25-ZCU25 – Today’s Settlement: -292.75
(FEB’26 Live Cattle x 2, AUG ’25 Feeder Cattle, SEP ’25 Corn – Cattle Crush Spread) – Still looking to get short and waiting to settle below the 14-day and 21-day moving averages. It got there today, but settled above the 21-day.
- 7/2/2025: ZMQ25-ZMZ25 – Today’s Settlement: -14.8
(AUG-DEC’25 Soybean Meal Spread) – Still looking to buy this spread if we can get above the 14-day and 21-day moving averages.
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Rich Moran
Senior Commodities Broker
Direct: (312)985-0298
Cell: (773)502-5321
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