KC Wheat Continues Bullish Climb Plus December Wheat Call Spread

I am Stephen Davis, senior market strategist at Walsh Trading, Inc., Chicago, Illinois. You can reach me at 312-878-2391.

I really like this chart for July 2026 Kansas City wheat (Hard Red Winter Wheat). Seven days ago it gapped higher and keeps going higher. This is bullish in my opinion. 

According to this week's United States Department of Agriculture Weekly Crop Progress Report, crop conditions for wheat dropped 4 percent to 30 percent good-to-excellent (GTE) compared to 45 percent a year ago. Global wheat supplies are plentiful at the moment but as always, weather can affect this supply. 

The outlook for Kansas City wheat is for higher prices, in my opinion. 

A trade strategy is to buy July 2026 Kansas City wheat 641½ good til cancelled (GTC). Risk the trade to 631½ stop GTC. Risk $500 to make $1,000 on each contract. 

An option trade strategy is to buy December 2026 Wheat (WZ26) 640 - 740 call spread. This spread costs 28.0 ($1,400) today. The most you can make is $5,000 on each spread. In my opinion, this is a very conservative spread that allows you to be long wheat the rest of the year without getting stopped out or triggering a margin call. 

To discuss trading strategies, contact me anytime. Have an excellent day. 

Stephen Davis
Senior Market Strategist 
Walsh Trading

Direct 312 878 2391 
Toll Free 800 556 9411
sdavis@walshtrading.com  
www.walshtrading.com

Use this link to join my email list: SIGN UP NOW

Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.

Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.