Core Insights - Soybean futures prices have been in a significant downtrend since February 2022, following a retest of the all-time high price of 1789'0 set in September 2012 [1] Market Volatility - Market volatility tends to increase when trading at or near all-time highs, with the average daily range for November soybeans currently around 15'0 per day or $750 [2] - Traders often seek to reduce risk through various instruments, such as options and spread trading, with the November calendar spread of 2025/2026 showing an average daily range of 5'0 per day or $250, indicating reduced volatility [2] Calendar Spread Strategy - The November Soybean 2025/2026 calendar spread involves buying 2026 November soybean futures while simultaneously selling 2025 November soybean futures, anticipating a wider price difference between the contracts [3] - This strategy allows traders to profit from the relationship between different delivery months of the same commodity, rather than speculating on the outright direction of soybean prices [3] Rationale Behind the Strategy - The calendar spread is a bullish strategy on the spread itself, where the profit driver is the price difference between the two contracts [4] - By trading the spread, traders reduce their exposure to overall price movements in soybeans, as losses on the long 2026 contract may be offset by gains on the short 2025 contract if the spread moves as anticipated [4]