Commodities
Corn Spread Reaches New High, Raises Short Selling Bets
The JUL-SEP Corn Spread (ZCN27-ZCU27) has been on an upward trend since mid-August, reaching a 52-week high of +33½ on September 2nd. However, this past Friday it settled below its 14-day moving average at +27¾, and today it closed at the same price.
According to Rich Moran, Senior Commodities Broker at Walsh Trading, Inc., getting short this spread might offer a good risk/reward trade. He suggests selling ZCN27-ZCU27 at +27½ or better when the market opens tomorrow evening.
The Full Carry for Corn from July 2027 to September 2027 is currently 22.04, which would put the JUL-SEP Corn Spread (ZCN27-ZCU27) at -22. Moran recommends risking $6.50 per spread to make $13 or more, plus fees and commissions.