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:

1. 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.   

1. 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.

1. 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.

1. 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

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