Hello hog traders!
We are running out of time on the Feb-Aug spreads. We need to roll the G into the J. That spread traded as wide as 9.50 last week. It’s above 8 this am. Feb remains a slight discount to cash, so we could see a jump here into the high 7’s on the spread. For purposes of this newsletter we are going to roll that spread on a break above at -7.90 We still believe J will run on the Q. China is burning through pork reserves and will be in our market for a while. Also, take a look at June Oct bull spreads. That will be our next trade.
RECOMMENDATION:
SELL 1 UNIT OF FEB HOGS
BUY 1 UNIT OF APRIL HOGS
THIS WILL LEAVE YOU:
LONG 2 UNITS OF APRIL HOGS
SHORT 2 UNITS OF AUG HOGS

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The Swine Times - The Swine Times newsletter is designed to help participants in the pork complex understand and trade the futures markets. Our intention is to fundamentally inform and trade based off the information we have.
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