JUL-SEP Corn Spread Sees Wild Price Fluctuations Amid Market Volatility
The JUL-SEP Corn Spread (ZCN27-ZCU27) has seen significant price fluctuations. According to Walsh Trading, as of August 14th, Full Carry for Corn from July 2027 to September 2027 is 22.04, which would put the JUL-SEP Corn Spread at -22.
However, on September 2nd, ZCN27-ZCU27 reached a 52-week high of +33½. It then settled below its 14-day moving average for the first time since August 14th, reaching a price of +27¾ on September 25th and again today.
Rich Moran, Senior Commodities Broker at Walsh Trading, suggested selling the spread when it opened last night at +28, with a risk-reward ratio of 6½ to make 13. However, as the market moved down to a settlement of +19, Moran advised buying back in if possible.
If you did get short ZCN27-ZCU27 at +27½, Moran recommends trying to buy it back where the market opens with a limit of +21, which would result in making 6½ cents or $325 per spread. If this is not possible, leave a resting bid in at that price and move your stop down to +25 for a small winner.