Walsh Soybean Opportunities - Pure Hedge

Barchart · 21h ago

Soybeans opened lower tonight following the U.S-China summit earlier today. China is still on board for at least 25 MMT of soybean purchases annually through 2028. China is roughly halfway complete with that commitment. More details on today’s meeting should be released in the morning, including progress toward the $17 billion in non-soybean agricultural purchases, agreed upon in May. China still has a ways to go to fulfill that commitment. For now, there seems to be no major news from this meeting for soybeans. China’s import duty also appears to remain in place. With funds holding a large long position and beginning to unwind as shown in last Friday’s COT report, and harvest picking up this may be an opportunity to hedge or establish a bearish position in the March contract.

 

Consider the following trade:

 

MARCH’27 SOYBEANS 1328 

BUY 1 MARCH’27 1320 PUT 51 ¼ 

SELL 1 MARCH’27 1270 PUT 26 5/8

SELL 1 MARCH’27 1480 CALL 15 3//8

BUY 1 MARCH’27 1580 CALL 7 ⅛ 

PRICE: 16 ⅜       

COST: $818.75/TRADE PACKAGE, PLUS FEES AND COMMISSIONS

MARCH’27 SOYBEAN OPTIONS EXPIRE 2/19/27 (148 DAYS)

MAXIMUM LOSS: LIMITED

 

If you would like to receive more information on the commodity markets, please use the link to join our email list

Sign Up Now

 

If you would like to open an account, please use the link below.

Open An Account

 

Hans Schmit

Broker, Pure Hedge Division

Direct: 312-765-7311

hschmit@walshtrading.com

WALSH TRADING INC.

 

Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.

Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.

This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.