DEC ’26 KANSAS CITY-CHICAGO WHEAT SPREAD (KEZ26-ZWZ26) - WALSH PURE SPREADER

WALSH PURE SPREADER

Pure Hedge Division

RICH MORAN                                                                                                                        7/30/2026

DEC ’26 KANSAS CITY-CHICAGO WHEAT SPREAD (KEZ26-ZWZ26)

Kansas City Wheat and Chicago Wheat are similar, however they are used for different end products.  Kansas City Wheat is used for all-purpose flour and is found in pan breads, artesian breads and noodles.  If forms a stronger and more elastic dough.  Chicago Wheat is found in cakes, cookies and pastries.  

The school of thought is that Chicago Wheat should trade at a slight discount to Kansas City Wheat because of its lower protein content.  There are obviously many more factors such as the weather and size of the crop production that affect the supply and demand of these wheats.

Both of these wheats have had some difficulty on the farm, and they are both still trading not too far from their 52-week highs.  That being said, Kansas City Wheat has been having the toughest time of the two and is trading at a much larger premium to Chicago Wheat than usual.  For example, today DEC ’26 Kansas City Wheat settled 65 ¼ cents higher than DEC ’26 Chicago Wheat.  So, this spread (KEZ26-ZWZ26) settled +65 ¼.  Almost every Kansas City Wheat farmer I have spoken with was expecting extremely lower production numbers.  Some were expecting zero production with nothing but dirt as a result of their hot and dry weather.

This spread has been comfortably hovering above both the 14-day and the 21-day moving averages for a couple weeks now and I don’t think this trend is over.  In my opinion, it is probably not too late to buy this spread.

I am suggesting that when the market opens this evening, try to buy the DEC Kansas City-Chicago Wheat Spread (KEZ26-ZWZ26) at +60 or better.  If you are unable to buy it there on the open, leave a resting (GTC) order in to buy it at +60.

Risk 12 cents or $600 to make 20 cents or $1,000, 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 

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