DEC Wheat Market Poised for Strength Over Corn, Says Walsh Trading's Moran

Walsh Trading's Rich Moran discusses the recent run-up in the DEC Wheat and Corn markets. Both commodities have made 52-week highs over the last couple of days, with some speculating that Corn may reach $6.00.

Moran notes that many wheat farmers are experiencing poor yields this year, which could impact the market's strength. However, he suggests that the increase in open interest for Wheat could indicate new long believers entering the market, supporting its relative strength over Corn.

In contrast, the Corn market has seen a decline in open interest during the recent rally, which Moran attributes to weaker shorts exiting the market. He believes this decrease in open interest may result in less built-in support for the Corn market.

Moran recommends buying the DEC Wheat-Corn spread (ZWZ26-ZCZ26) at 221 with a risk of 17 cents or $850 to make 25 cents or $1,250 per spread. He cautions that this is a speculative trade and not suitable for all investors.