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Good morning hog traders
We are looking to cover our April-June hog bear spread at 9.75 cents premium to the June hogs. We entered this trade near 5.50 cents to the June, profits are so far near 3.50. This trade has gone our way and we wish to take profits on a little more of a push to the spread.
This will leave us outright short December hogs, which we recommended being short of back near 66 cents. We remain bearish and are ready to sell more as continue to sell off. Recent export reports in hogs have been brutal and we do not see demand being able to pick up enough to offset higher weights on hogs ready to move ASAP.
RECOMMENDATION:
Buy 1 unit April hogs
Sell 1 unit June hogs @ 9.75 to cover positions.
Call the desk with any questions.
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This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
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