WALSH PURE SPREADER - Pure Hedge Division
WALSH PURE SPREADER
Pure Hedge Division
RICH MORAN 10/8/2025
OCT Live Cattle-OCT Lean Hogs (LEV25-HEV25)
On 9/8/25 we got short the (LEV25-HEV25) at 139.000. You will find this trade below under “Following up on the still active past trades ideas”. We put this position on when the spread traded and settled below the 14-day and the 21-day moving averages. We were risking 6.000 ($2,400) at 149.900 to make 18.000 ($7,200) at 121.900. The spread went 6.000 (what we were initially risking) in our favor, so we lowered our stop to 139.900 for a scratch on 9/12/25. I never like to turn a winner into a loser.
Since then, it has not hit 139.000 (our new stop) or 121.900 (our initial objective) and Lean Hogs go off the board next Tuesday (10/14/25). Also, yesterday (10/7/25), this spread settled above both the 14-day and 21-day moving averages. I think it might be time to take these October spreads out of our position.
Today it settled at 136.225 which is 3.675 ($1,470) per spread in our favor. I think we should buy the spread back when the market reopens. Hopefully we will maintain our profit.
Both the DEC ’25 and FEB ’26 versions of this spread are currently both hovering above the 14-day and 21-day moving averages. We will be closely monitoring these spreads to see if they can get back below both moving averages. If so, we will probably be looking to get short the Live Cattle/Lean Hogs spread again.
I think by selling this spread we may have found a “more comfortable” means of slipping some Live Cattle shorts into our position.
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
Following up on the still active past trade ideas:
- 10/3/2025: ZCZ25-ZOZ25 (DEC Corn-Oats Spread)
- 10/1/2025: SBH26-SBK26 (MAR-MAY’26 Sugar #11 Spread)
Today the spread settled 134¾, above the 14-day that settled 119 and the 21-day that settled 113½.
I think if we can break through this support and trade below, as well as settle below, both of these moving averages, this support could turn into resistance. At this point, it might be a good time to get short the ZCZ25-ZOZ25 spread (sell ZCZ25 and buy ZOZ25). Then, I would suggest having a short stop above its recent 5-month high of 122. We can choose our exact risk/reward levels if and when we put this position on.
Today’s settlement: .46, Long at .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 corn market opens.”
“If we get filled, risk 24 cents (18) or $268.80 Per Spread to make 50 cents (92) cents or $560 Per Spread plus fees and commissions.
On 10/2/25 the market opened at .41, so we are long at .42.
Risk 24 cents (.18) or $268.80 Per Spread to make 50 cents (.92) or $560.00 Per Spread plus fees and commissions.
- 9/24/25: KEZ25-ZWZ25 (DEC’25 Kansas City-Chicago Wheat Spread)
Today’s settlement: -14, Long at -14½
On 9/24/25, KEZ25-ZWZ25 settled -12¾.
I suggested placing an offer to buy KEZ25-ZWZ25 at -14½ on 9/25/25. The spread traded -15, so we are long at -14½.
Risking 8 cents (-22½) or $400 to make 24 cents (+9½) or $1,200 plus fees and commissions.
- 9/17/2025: ZWZ25-ZCZ25 (DEC Wheat-Corn Spread)
Today the spread settled 85¼, below the 14-day that settled 93½ and the 21-day that settled 96½.
If we can get the ZWZ25-ZCZ25 spread to trade and settle above the 14-day and 21-day moving averages, I think getting long this spread with a relatively short stop could be a good play. I believe this might offer us a nice risk to reward trade. I think we should risk about 15 cents or $750 Per Spread to make about 50 cents or $2,500 Per Spread, plus fees and commissions.
- 9/12/25: ZLF26:H26:K26 (JAN-MAR-MAY Soybean Oil Butterfly)
Today’s settlement: -.17, Long at -.20
This is purely a Full Carry Comparison trade suggestion …. On Friday (9/12/25), I suggest trying to get long the ZLF26:H26:K26 butterfly on Monday at Friday’s settlement of -.20 or better (buying the JAN-MAR Soybean Oil spread .20 below where you sell the MAR-MAY Soybean Oil spread). Monday opened at -.20 and that was the high, so we are long at -20.
Risking 5 tics (-.25) or $30 Per Spread to make 20 tics (00.00) or $120 Per Spread, plus fees and commissions.
- 9/10/25: ZCZ25-ZCH26 (DEC-MAR Corn Spread)
Today’s settlement: -15¾, Long at -17½
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 Dec25-Corn versus selling Mar’26-Corn) at -17½.
The spread opened at -17½ and traded lower, so we are long at -17½.
Risking 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: 132.225, Short at 139.900 – TODAY’s ARTICLE IS ABOUT THIS SPREAD. PLEASE SEE ABOVE.
On Friday (9/5/25) I suggested trying to get short the LEV25-HEV25 Spread at 139.900 or better on Monday (9/8/25. We were able to sell the spread at 139.900 on 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 commissions.
9/12/25: we moved our stop down to our entrance price of 139.900 for a scratch. I never like to turn a winner into a loser.
- 8/27/25: ZSF26-ZSN26 (JAN-JULY’26 Soybean Spread)
Today’s Settlement: -37¾, Long at -40¼
We were looking for this spread to 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.
On 10/3/25 I said, “yesterday (10/2/25) this spread, ZSF26-ZSN26 (JAN-JULY’26 Soybean Spread), settled above both the 14-day and the 21-day moving averages at -39. I suggest buying the spread at -39 or better when the Soybean market opens. If you do not get filled on the opening, work a -39 bid.”
On Friday (10/3/25) I suggested bidding -39 or better when the Soybean market reopened. It opened at -40½, so we are long at -40¼. I also suggested if and when/where we get filled, Risk 6 cents or $300 to make 18 cents $900 Per Spread, plus fees and commissions. make 12 cents.
Instead, we are going to Risk 4 cents (-44¼) or $200 to make 12 cents (-28¼) or $600 Per Spread, plus fees and commissions.
- 8/6/25: ZSX25-ZSF26 (NOV-JAN Soybean Spread)
Today’s Settlement: -14¾, 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 Per Spread, plus fees and commissions.
- 7/23/25: ZWZ25-ZWH26 (DEC’25-MAR’26 Wheat Spread)
Today’s Settlement: -18, 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
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.
Futures and options trading involves 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.