WALSH PURE SPREADER

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Rich Moran                                                                                       9/12/2025

JAN-MAR-MAY Soybean Oil Butterfly (ZLF26:H26:K26)

Today we are looking at the JAN-MAR-MAY Soybean Oil Butterfly (ZLF26:H26:K26).  We calculate this by finding the difference between the JAN-MAR Soybean Oil Spread (ZLF26-ZLH26) and the MAR-MAY Soybean Oil Spread (ZLH26-ZLK26).

Today ZLF26-ZLH26 settled -.34 and ZLH26-ZLK26 settled -.14 .  So, the butterfly settled -.20 (-.34 minus -.14).                                                                                                                     

Full Carry for JAN-MAR Soybean Oil is .86.  Full Carry for MAR-MAY Soybean OIL is .89.  So Full Carry for these two are almost the same.  The exact difference is -.03 (.86 minus .89).

Since matching its 52-week high of +.12 on May 1^st, this butterfly had a strong downward trend until it hit a 14-day low, and at the time a 52-week low, of -.22 on August 14^th.  Since then, it has basically traded sideways between -.23 and -.16 .

This is purely a Full Carry Comparison trade suggestion …. I suggest trying to get long the ZLF26:H26:K26 butterfly on Monday at today’s settlement of -20 or better (buying the JAN-MAR Soybean Oil spread .20 below where you sell the MAR-MAY Soybean Oil spread).   

Risk 5 tics (~-.25) or $30 Per Spread to make 20 tics (~00.00) or $120. Per Spread, plus fees and commissions.

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Following up on the still active past trade ideas:

•          9/10/25: ZCZ25-ZCH26 (DEC-MAR Corn Spread)

Today’s settlement: -17¼, Long at -17½  

Today, ZCZ25-ZCH26 spread settled at -17½, the high of the day.  This is just above both the 14-day and 21-day moving averages. 

On Wednesday (9/10/25) I suggested that if the ZCZ25-ZCH26 opens at -17½ (Wednesday’s settlement) or higher, trying to get long the spread (buying Dec-Corn versus selling Mar’26-Corn) at -17½.  We will use a short stop just below the 52-week low of -18¾.   

The spread opened at -17½ and traded lower, so we are long at -17½.  

On Wednesday I said that if are able to get long at -17½:

 Risk 2 cents (-19½) or $100 Per Spread to make 6 cents (-11½) or $300 Per Spread, plus fees and commissions.  

•    9/5/25: LEV25-HEV25 (OCT Live Cattle-OCT Lean Hogs)

Today’s settlement: 132.850, Short at 139.900

On Friday (9/5) I suggested trying to get short the LEV25-HEV25 Spread at 139.900 or better on Monday.  We were able to sell the spread at 139.900 om Monday.

Risking 6.000 (145.900) or $2,400 Per Spread to make 18.000 (121.900) or $7,200 Per Spread, plus fees and commission.

Today, let’s move our stop down to our entrance price of 139.900 for a scratch.  I never like to turn a winner into a loser.

•    9/3/25: ZMZ25-ZMH25 (DEC-MAR Soybean-Meal Spread)

Today’s settlement: -8.7, Long at -10.2

On Wednesday (9/3/25) I suggested trying to get long the ZMZ25-ZMH25 Spread at Wednesday’s settlement of -10.2 or better when the market reopened for Thursday market.  The opening was -10.2 and it traded -10.3, so we are long at -10.2.

We are risking 1.3 dollars (-11.5) or $130 Per Spread to make 5 dollars (-5.2) or $500 Per Spread, plus fees and commissions.

Today, let’s move our stop down to our entrance price of -10.2 for a scratch.  I never like to turn a winner into a loser.

• 8/27/25: ZSF26-ZSN26 (JAN-JULY’26 Soybean Spread)

 If we can get back above and settle above the 14-day and 21-day moving averages, I think we should try buying the spread with a short stop below these moving averages.

Today, we settled even with 14-day moving average and just below the 21-day moving average.

• 8/6/25: ZSX25-ZSF26 (NOV-JAN Soybean Spread)

Today’s Settlement: -19, Long at -17½

The spread settled above the 14-day and the 21-day at -17¾ on 8/21/25.  You should be long at -17½ from the open on 8/22/25.

Risking 3½ cents (-21) or $175 to make 9 ½ cents (-8) or $475

• 7/23/25: ZWZ25-ZWH26 (DEC’25-MAR’26 Wheat Spread))

Today’s Settlement: -17½, Long at -18½

Risking 3½ cents (-22) or $175 Per Spread to make 10 cents (-8½) or $500 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

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