The JUL-DEC CORN SPREAD (ZCN27:Z27) saw a notable shift today following the latest WASDE Report, which indicated a tighter corn supply than previously expected. This led to front-month corn futures settling at least 9 cents higher, causing the pricing curve to flatten slightly and spreads to become less negative.
The spread itself settled up 1¾ cents at -12¾. This marks a significant drop from its peak of +33¾ on September 2, 2026, representing a decline of 46½ cents in just over two months. Since September 30, 2026, the spread has traded below both the 14-day and 21-day moving averages, except for a brief moment today when it briefly traded above the 14-day average before settling below both again.
Rich Moran of Walsh Trading suggests that if the Old Crop, New Crop market in corn continues to tighten, the spread could potentially return to positive territory, similar to earlier this autumn. He notes that if the spread trades and settles above the moving averages, it might present a good opportunity to go long on the spread.
Moran emphasizes that he will continue to monitor the situation and provide updates if the opportunity arises. He also invites questions or thoughts on the article or the commodities futures markets in general.