Pile of soybeans by PAVEL IARUNICHEV via iStock

WALSH PURE SPREADER ....

Walsh Trading Walsh Trading Fri Jun 27, 4:20PM CDT
Pile of soybeans by PAVEL IARUNICHEV via iStock

                                                                                                                                                                  

                                                                                                                                                                                   SOYBEAN OIL 

AUG-DEC ’25 SOYBEAN OIL SPREAD
ZLQ25 – ZLZ25		  
Daily Settlement                   ↑ (-0.13) 
14 Day M/A                   ↑ (-0.34) 
21 Day M/A                   ↑ (-0.33) 
14 Day High/LowN/A 
YTD High/LowN/A 

RICH MORAN                                                                                                       6/27/2025

                            AUG-DEC SOYBEAN OIL SPREAD (ZLQ25-ZLZ25)

With Grain Stocks and Planted Acreage coming out on Monday, we will surely know a lot more this time Monday.  Unless you have a strong opinion, it is probably a good time to “wait and see”.

I believe soybean oil may have been dragged down by crude oil for the last week or so.  With bean oil slightly lower again today, the Aug-Dec Soybean Oil Spread (ZLQ25-ZLZ25) settled up 16 cents to -0.13.  That being said, if bean oil can get back to an upward trend, I believe the spread may also see an upward trend.  I think this spread could even hang tough if the soybean oil market softens.

Over the past 52 weeks (ZLQ25-ZLZ25) has traded as high as +1.82 (7/1/24) and as low as -0.79 (6/20/25).  Historically this spread spends more time in positive territory than negative territory.  I think that trend may continue, and I would look to get long this spread if we can get it back down to near -0.50.

I suggest waiting until after Monday’s releases and then we can re-evaluate things.  Have a great weekend!

 

If you have any thoughts/questions on this article or any questions in regard to the commodities futures markets, please feel free to contact me at;

 

Rich Moran

Senior Commodities Broker

RMoran@walshtrading.com

Direct : (312)985-0298

Cell : (773)502-5321

 

 

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