DEC-JUL SOYBEAN OIL SPREAD (ZLZ26-ZLN27)

WALSH PURE SPREADER

Pure Hedge Division

RICH MORAN                                                                                                                        7/23/2026

DEC-JUL SOYBEAN OIL SPREAD (ZLZ26-ZLN27)

I have recently expressed that I believe the Soybean Oilshare is not done increasing.  I think it will continue to increase over the next six months or so.  My favorite way to play this is buying soybean oil spreads. Nothing is always in the commodity futures markets, but generally, in the grain markets, spreads are directional.  What I mean by that is the front months usually lead the way. Another nice thing about these spreads is they are generally less volatile.

Soybean Oilshare is the value of the Soybean Oil verses the combined value of the Soybean Oil and the Soybean Meal after crushing a bushel of soybeans.  Historically, Soybean Meal has usually been the more valuable part of the crush, but recently the Soybean Oilshare has gotten above 50%.

Soybean Oil was predominantly used as an edible oil.  It is also used as a biofuel with recent environmental mandates and incentives increasing this use of Soybean Oil to help reduce one’s carbon footprint. Soybean Oil is regarded as a renewable energy with less greenhouse emissions, reducing potential global warming and climate change.  All of these are factors in its strength. 

DEC soybean oil is my favorite of the bunch, and I have already suggested buying the DEC-MAR Soybean Oil Spread.  That is buying DEC and selling MAR ’27.  If you have already bought this spread, I think you might want to hold on to that position for now.

I think now could be a good time to buy a different soybean oil spread as well.  I also like buying the DEC-JUL Soybean Oil Spread (ZLZ26-ZLN27). This spread could be a little more volatile than the DEC-MAR spread, so please keep that in mind.

I am suggesting that when the market opens this evening, put in a resting (GTC) order to buy the DEC-JUL Soybean Oil Spread (ZLZ26-ZLN27 at 2.00 (that represents 2 cents).

If/when you get filled, risk 130 ticks (price of 0.70) or $780 to make 260 ticks (price of 4.60) or $1,560 Per Spread, plus fees and commissions.

If you have any thoughts/questions on this article, or any questions at all in regard to the commodities futures markets, please use this link  Sign Up Now

Rich Moran

Senior Commodities Broker

RMoran@walshtrading.com

Direct: (312)985-0298 

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