WALSH PURE SPREADER
WALSH PURE SPREADER ….
SEPT ‘25-DEC ‘25 CORN SPREAD (ZCU25-ZCZ25)
6/5/2025 - Rich Moran
Settlement : -16¾
Day’s Range : High -16, Low -17¼
52-Week Range : High +3¼, Low -17 ¼
In my last article I wrote about looking for a reason/opportunity to stick our toes in the water with some longs in the corn futures. I suggested that if and when the time is right, the over-all risk/reward may be in the buyer’s favor.
There was recent a downward trend in JULY CORN from 5/22’s high of $4.64¾ when it settled $4.63 until 6/2 when it settled $4.38. We had five out of six down days. The one day it wasn’t down, was when it settled steady on 5/27. After this recent downward trend, it has settled $4.38½, on 6/3, $4.38¾ on 6/4 and it is still trading right there now as I write.
I am definitely not saying CORN has hit bottom, but it might not be a bad time to start looking for opportunities.
Since JULY CORN has come down from its 52-week highs of 521½ on 2/19/25, the spread of the SEPT ’25 contract over/minus the DEC ’25 contract (ZCU25-ZCZ25) has gone from +3¼ cents to -17¼ cents today.
It is my belief that it might be the JULY CORN contract that has possibly been pulling/holding the SEPT contract below the DEC contract. Buying this spread might be a nice way to begin when looking for opportunities in the CORN market from the long side.
I would suggest starting with buying this spread at -18, then -20 and -22. If we are able to buy all three levels, we will be long 3 spreads at an average of -20.
Risk 5 cents (-25) or $750 Per 3 Spread Package to make 15 cents or $2,250 Per 3 Spread Package, plus fees and commissions.
For the Corn Spread Mini :
Risk 5 cents (-25) or $150 Per 3 Spread Package to make 15 cents or $450 Per 3 Spread Package, plus fees and commissions.
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Rich Moran
Senior Commodities Broker
Direct: (312)985-0298
Cell: (773)502-5321
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