AUG-NOV SOYBEAN SPREAD (ZSQ26-ZSX26) - WALSH PURE SPREADER

  RICH MORAN                                                                                                                        5/5/2026

AUG-NOV SOYBEAN SPREAD (ZSQ26-ZSX26)

The AUG-NOV SOYBEAN SPREAD (ZSQ26-ZSX26) has been trading between +13½ and +20 since the middle of April.  Full Carry for this spread is 42.77.  At Full Carry this spread would be negative at -42¾.  Today ZSQ26-ZSX26 settled positive at +15½. This is 58¼ above Full Carry. That being said, markets don’t necessarily trade to Full Carry, but in this case, I think it may benefit our risk/reward.

The soybean market has recently had a nice run up and may be starting to feel a little heavy.  I think the AUG-NOV Soybean Spread may continue its recent trend down towards 0 (zero) and could even go negative in the direction of Full Carry.  If the soybean market does start to soften, this might especially help the spread go lower.  Ever since ZSQ26-ZSX26 settled down by more than 20 cents on March 16^th, it has continued its trend down, while remaining just below the 14-day and 21-day moving averages along the way.  Today it traded below and settled below both moving averages.

I am suggesting that if the market opens this evening below both moving averages (+18), we try to sell it, but not lower than +16.

Risk 5 cents or $250 Per Spread to make 10 cents or $500 Per Spread, plus fees and commissions.