MAR SOYBEANS vs. MAR CORN + MAR WHEAT - WALSH PURE SPREADER

WALSH PURE SPREADER

Pure Hedge Division

RICH MORAN                                                                                                                        9/1/2026

MAR SOYBEANS vs. MAR CORN + MAR WHEAT  

(ZSH27) – (ZCH27+ZWH27)

The grain markets have obviously been on a tear.  We are routinely seeing new highs in grain markets these days.  I think I understand the recent strength of the corn and wheat markets.  I have been hearing nothing but bad news from farmers in regard to their corn and wheat. I think soybeans may end up being a little more plentiful than the corn and/or wheat.  It takes less fertilizer to grow soybeans than corn.  I believe that because the availability of fertilizer was interrupted due to the war with Iran over the Strait of Hormuz there was more acreage being substituted with soybeans instead of corn than anticipated. Another example of something that might increase the supply of soybeans is cotton growers have substituted acres of cotton with acres of soybeans.  They were trying to keep the supply of cotton a little lower to help strengthen the price of cotton. We have definitely seen an uptick in the price of cotton.

The price of a soybean contract is very close to the combined price of a corn contract and a wheat contract.  Today MAR Soybeans (ZSH27) minus the combined price of MAR Corn (ZCH27) and MAR Wheat (ZWH27) settled -20½ cents.  So (ZSH27 )-(ZCH27+ZWH27) or [(1337¼)-(560¼+797½)] = -20½.     

This spread package has not settled above the 14-day or 21-day averages since 8/11/26.  I think if it stays below both these moving averages, it could continue to go lower.

I suggest that when the market opens this evening, try to sell (ZSH27)-(ZCH27+ZWH27) at -15 cents. Leave a resting order (GTC) in to sell it at that level.

If you are able to sell this spread, risk 25 cents (price +10) or $1,250 to make 45 cents (price of -60) or $2,250 Per Spread, plus fees and commissions.

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Rich Moran

Senior Commodities Broker

RMoran@walshtrading.com

Direct: (312)985-0298 

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