WALSH PURE SPREADER - Active Trade Suggestions

WALSH PURE SPREADER

Pure Hedge Division

RICH MORAN

                                                                                                    12/31/2025

HAPPY NEW YEAR!

With the New Year’s holiday upon us, I am still going to run through and update our “still active” trade suggestions (please see below). 

I will be doing a little holiday traveling over the next week.  The days that I am not in the office, I will be accessible.  All my contact information is below in my signature.

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

ACTIVE TRADE SUGGESTIONS

• 12/17/2025 ZLH26-ZLN26 (MAR-JULY ’26 SOYBEAN-OIL SPREAD)

Today’s Settlement: -0.90, Long at -0.79

****Thursday (12/18/25): Shortly after the market opened Thursday (12/18/25) morning, we would have been able to buy -0.79’s in ZLH26-ZLN26 (MAR-JULY SOYBEAN-OIL SPREAD).  It did trade -0.80.  When that happened, it was -0.53 bid in ZLH26 (JAN-MAR ’26 SOYBEAN-OIL SPREAD), so we were able (on paper) to sell out and get flat that spread at -0.53. This was for a 1 tick or $6.00 loss, plus fees and commissions.   

Risking 22 ticks (price of -1.01) or $132 to make 66 ticks (price of -0.13) or $396 Per Spread, plus fees and commissions.

• 12/12/2025: HEG26-HEM26 (FEB-JUNE ’26 LEAN-HOGS SPREAD)

****PLEASE PUT THIS TRADE ON THE SIDE BURNER THROUGH THE HOLIDAYS.  IT MIGHT BE TOO DIFFICULT TO TRACK THE MOVING AVERAGES ETC WITH THE SPORADIC DAYS OFF OVER THE HOLIDAYS.  WE WILL DEFINITELY RE-ADDRESS IT IN JANUARY ….

Today’s Settlement: -17.200, 14 Day: -16.825, 21 Day: -16.575

With the recent outbreak of the African Swine Fever (ASF) in Barcelona, Spain, I think it might be a good time to look to buy a more front month Lean-Hogs future and sell a Lean-Hogs future that is further out in the calendar.  For example, I believe the spread between the February ’26 contract (HEG26) and the June ’26 contract (HEM26) could strengthen (go less negative).

Spain is the EU’s top producer of pork.  The recent outbreak of ASF in Barcelona has taken place in wild boars, but history tells us this can still cause a fear or “hands-off” mentality that may spread through-out many countries, including China.  Because these countries may not accept/import Spain’s pork, this may result in the short-term price of pork to going up within all these countries.

The FEB-JUNE ’26 Lean Hogs Spread (HEG26-HEM26) settled today at -16.525.  This is a little below the 14-day moving average (-16.325) and the 21-day moving (-16.125).  I feel that if we can trade above and settle above both of these two moving averages, it might be a good place for us to get long this spread.  We would be buying HEG26 and selling HEM26, aka buying the HEG26-HEM26 Spread.

We can choose our exit points if and when this lines up and we buy the spread.  If you do get the long this spread and it trades at or below -18.600, I suggest you take the loss and exit the trade at that point.

•  11/21/2025: ZSN26-ZSX26 (JULY-NOV’26 SOYBEAN-SPREAD)

**** On Monday, 12/15/25, ZSN26-ZSX26 traded below 18 cents so we reached our objective of 18 cents and made a profit (on paper) of 20 Cents or $1,000 Per Spread, plus fees and commissions.

Short at 38

**** 11/21/2025 – When the market opens on Sunday night, I am suggesting that selling ZSN26-ZSX26 spread at 36¼ or better might be a good play.  If you don’t get filled on the opening, I would keep working a 36¼ offer.

**** The opening range on 11/24/2025 (Sunday Night at 7:00pm) was 38 – 38¾, so we are short (on paper) at 38.

• 11/14/2025: ZCH26-ZCZ26 (MAR-DEC’26 Corn Spread)

Today’s Settlement: -20¼, Long at -23½

On 11/14/25 I had suggested trying to buy this spread when the corn market opens on Sunday night at -23½ or better.  If you do not get filled on the opening, continue to work a -23½ bid.

On 11/17/25 MAR-DEC’26 Corn Spread opened at -23 and traded down to -23¾, so we are long (on paper) at -23/½.

**** 12/9/2025 – We now have nice lead on this spread so I am suggesting we lower our stop (on paper) to 25½. 

New Parameters: Risking 2 ticks (price of -25½) or $100 to make 23½ cents (price of -½) = $1,175 Per Spread, plus fees and commissions.

• 11/12/2025: KEH26-ZWH26 (March’26 Kansas City-Chicago Wheat Spread)

**** On Monday, 12/23/25, KEH26-ZWH26 traded up to +11 cents and settled there, so we reached our objective of +9½ cents and made a profit (on paper) of 24 Cents or $1,200 Per Spread, plus fees and commissions.

Long at -14½

Hard Red Winter Wheat minus (-) Soft Red Winter Wheat is more commonly known as the Kansas City-Chicago Wheat Spread.

**** (11/13/25) The (KEZ25-ZWZ25)-(KEH26-ZWH26) Condor opened up yesterday at +¼ and traded up to +1¼, so we could have sold evens or 0’s (par).  So, we would have rolled our KEZ25-ZWZ25 long position at -14½ to being long the KEH’26-ZWH’26 spread at -14¼.

**** 12/17/2025 – We now have nice lead on this spread so I am suggesting we lower our stop again (on paper) to -6½.  That would give us a profit of 8 cents or $400 (our initial risk on the trade).

New Parameters: We are now looking to make 8 cents (price of –6 ½) = $400 OR to make 24 cents (price of +9½) = $1,200 Per Spread, plus fees and commissions.

• 10/1/2025: SBH26-SBK26 (MAR-MAY’26 Sugar #11 Spread)

Today’s settlement: 0.35, Long at 0.42

On 10/1/25 I said, “I think it might be a good play to bid today’s settlement (42 cents) or better when the Sugar market opens.”

On 10/2/25 the market opened at .41, so we are long at .42.

Risk 24 cents (price of .18) or $268.80 Per Spread to make 50 cents (price of .92) or $560.00 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

Cell: (773)502-5321 

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