WALSH PURE SPREADER - Pure Hedge Division
WALSH PURE SPREADER
Pure Hedge Division
Rich Moran 9/5/2025
Oct Live Cattle-Oct Lean Hogs Spread (LEV25-HEV25)
Since August 1st, I have had us keeping an eye on selling the Oct Live Cattle versus buying the Oct Lean Hogs (LEV25-HEV25) spread. This spread has been on a steady uptrend since the end of June, but it started to slightly fall off in the middle of August. I have been writing about waiting for the spread to fall below and settle below both the 14-day and 21-day moving averages. That finally happened today.
I think by selling this spread, we might have a nice way, or should I say a “more comfortable” way, to slip some Live Cattle shorts into our position.
Today, LEV25-HEV25 settled at 139.950, the low of the day. This is about 1.000 below the 14-day moving average and about 2.500 below the 21-day moving average.
If LEV25-HEV25 is still below these moving averages when the market opens Monday morning, I suggest trying to get short the spread (selling Oct Live Cattle versus buying Oct Lean Hogs) at 139.900 or better.
Risk 6.000 or $2,400 Per Spread to make 18.000 or $7,200 Per Spread, plus fees and commissions.
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Following up on the still active past trade ideas:
- 9/3/25: ZMZ25-ZMH25 (DEC-MAR Soybean-Meal Spread)
Today’s settlement: -9.5, Long at -10.2
On Wednesday 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.
- 8/29/25: ZCZ25-ZCH26 (DEC-MAR Corn Spread)
I think we should try getting long the ZCZ25-ZCH26 (DEC-MAR Corn Spread) if we can settle above the 14-day and 21-day moving averages. Today, we settled about 1 cent below both moving averages.
- 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 about 2 cents below these two moving averages again.
- 8/6/25: ZSX25-ZSF26 (NOV-JAN Soybean Spread)
Today’s Settlement: -18½, 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
- 8/1/25: LEV25-HEV25 (OCT’25 Live Cattle-OCT’25 Lean Hogs Spread)
Wednesday’s Settlement was 144.50. I said if we are fortunate enough to have this spread, LEV25-HEV25, settle below the 14-day and 21-day moving averages, I think it could be a good time to short it. It just might be a more comfortable way to slide some Live Cattle shorts into our position.
Today’s article is about this spread …. See above.
- 7/23/25: ZWZ25-ZWH26 (DEC’25-MAR’26 Wheat Spread))
Today’s Settlement: -16½, long at -18½
Risking 3½ cents (-22) or $175 Per Spread to make 10 cents (-8½) or $500 Per Spread, plus fees and commissions.
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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.
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