Grain Spreads: 3 Trade Ideas

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Here are some trading ideas long term for consideration as we get deeper into 2026 and early 2027. In our opinion we see natural gas too cheap as it stands now into 2027. Global demand for natural gas we see soaring into 2027 as the Middle East Conflict amid major build outs of Data Centers. We also see the oil share trade, that for months has been long bean oil vs short soybean meal as an opportunity using January 2027 options to go long meal vs short oil. Remember that the Mid Term elections coming and those uncertainties may give the funds enough reason to unwind previously held long aggressive positions.

3 Trades

Bullish Play Natural Gas

Margin Per Spread: $138.00

Sell the March 2027 Natural Gas 6.50/5.50 natural gas put spreads at 9.60 or for a $9600 collection. The maximum risk on this strategy is $400 plus commissions and fees. We project a $1.50 /$2.00 rally for Natural Gas to the 5.00 level in the March 27/April 27 contracts. Should that happen we look to buy the back the Natural Gas Spreads for 6K. That would collect $3600 per spread less commissions and fees.

Bullish Play Soymeal

January 27 options

Margin Per Spread-$321.00

Sell the January 27 410/360 put spread for 46 points or a $4600 collection per spread.  The maximum risk is $400 per spread plus commissions and fees. We look to buy back the spread at 26 points if futures trade to the 370/380 area for a 2K collection per spread less commissions and fees.

Bearish Play Soybean Oil.

Margin $611.00.

Buy the January 27 Bean Oil 60 puts. Sell the January 27 Bean oil 58 vs 60 call spread. Collect 40 points or $240 upon entry less commissions and fees. The maximum risk is 160 points or $960 per spread plus commissions and fees. We project Bean Oil pulls back to the 5600/5800 level from the high 60s currently basis January 27 futures. Should that happen, we will have orders working to exit at a 300-point collection or $2040 per spread less trade costs and fees. 

Please Call or Email me with any questions. 

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Sean Lusk

Vice President Commercial Hedging Division

Walsh Trading

312 957 8103

888 391 7894 toll free

312 256 0109 fax

slusk@walshtrading.com

www.walshtrading.com

Walsh Trading

311 S Wacker Drive Suite 540

Chicago, Il 60606