The Swine Times 1/9 – Trade Rec
Hello hog traders
Feb-April spreads have pulled back below 7.00. We think this is a great spot to jump in and own the front of the curve. Belly prices are bottoming right now, we think slaughter numbers are going to begin to slow. Weather is also an issue as well, a major cold front is moving west to east. Weights should come off as well. For purposes of the newsletter, we are going to consider this order filled. If you want to be patient feel free to wait and see if you can grab it closer to 7.40. We don’t feel it necessary to wait. The index roll is going on right now, we think Feb will benefit once its done.
Buy 1 unit of Feb hogs
Short 1 unit of April hogs
This will leave you:
LONG 2 FEB HOGS
SHORT 1 APRIL HOG
SHORT 1 AUGUST HOG
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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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