MAR KANSAS CITY-CHICAGO WHEAT SPREAD (KEH27-ZWH27) - WALSH PURE SPREADER
WALSH PURE SPREADER
Pure Hedge Division
RICH MORAN 10/8/2026
MAR KANSAS CITY-CHICAGO WHEAT SPREAD (KEH27-ZWH27)
Hard Red Winter Wheat minus Soft Red Winter Wheat is more commonly known as the Kansas City-Chicago Wheat Spread. These wheats are similar, however they are used for different end products. Kansas City (Hard Red Winter) Wheat is used for all-purpose flour and is found in breads and noodles. It forms a stronger, more elastic dough. Chicago (Soft Red Winter) Wheat is found in cakes, cookies and pastries.
History tells us that it is very common for the difference in price (the spread) between these two wheats to be on either side of zero. That being said, Kansas City Wheat is generally a little more expensive.
There was a lot of bad news this past year for Kansas City Wheat so it has been priced at a higher premium than usual. Last October on Halloween (10/31/25) the MAR KANSAS CITY-CHICAGO WHEAT SPREAD (KEH27-ZWH27) opened up trading at +13½. As the hot and dry weather persisted in the region and Kansas City Wheat’s troubles became more and more apparent KEH27-ZWH27 traded higher and higher until it made it’s 52-week high of +79½ on August 18th. After that, it bounced around between +55 and +75. It could not find a direction by staying above or below the 14-day and 21-day moving averages. Finally on September 21st KEH27-ZWH27 settled below both of these moving averages and has not traded above or settled above either of them since. That includes today’s settlement of 51¼.
I think selling this spread with a stop slightly above the 14-day and 21-day moving averages could be a good risk reward trade.
I am suggesting that we try to sell KEH27-ZWH27 at +53. That is 1¾ cents above today’s settlement and a little below both of our two moving averages.
Risk 12 cents (price of +65) or $600 Per Spread to make 24 cents (price of +29) or $1,200 Per Spread, plus fees and commissions.
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Rich Moran
Senior Commodities Broker
Direct: (312)985-0298
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
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