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.
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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