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2017 Corn and Soybean Futures Spread

December 1, 2016

One of my favorite trades is a 2 corn vs 1 soybean spread. However, we don’t enter this spread for the current contract year and always use the first new crop contracts (i.e. dec for corn and nov for soybeans). For example, we would right now buy two 2017 Dec corn contracts and sell one…

July KC Wheat vs Chicago Wheat Futures Spread

May 5, 2016

Once again the KC Wheat has fallen below the Chicago Wheat. I’m specifically looking at the July contracts that are hovering around -13 to -15. It is very similar to the intermarket wheat spread I wrote about in November. That one dropped down to below -30 before making a charge back to zero. I started…

Historical Live Cattle Intramarket Spread

April 28, 2016

The December contract for live cattle futures has typically held a premium over the less significant August contract. The March bump in prices led to the December vs August intramarket spread shooting up towards its historical high. Anywhere over zero is a good entry. Given the long-term bearish outlook for the expanding herd, it looks…

Possible Exits for Feeder and Live Intra Spreads

March 29, 2016

The most recent Cattle on Feed report was within expectations but it also verified the growing herd and long-term stance of a bearish market. The cattle market prices dropped significantly after the report. Dropping along with the outright futures, both live cattle and feeder intra spreads have reached a point where an exit should be…

2016 Live Cattle Bear Spread

March 15, 2016

A correction in the cattle complex from the overly bearish sentiment has perked up the June vs August Live cattle spread. Historically speaking it is at a very high point, especially from this far out. Trade Details: Live Cattle Spread Futures Contracts: Short June ’16 Live Cattle vs Long August ’16 Live Cattle Trade Dates:…

Feeder Futures Bear Spread – August vs September

December 28, 2015

The last Cattle of Feed report by the USDA was the first clearly bullish news seen by the meat complex in months. The upfront months saw several limit up days. The further out months, like August and September, saw the gap between the months grow. This spike has created an opportunity for a feeder futures…

Managing The KC vs Chicago Wheat Spread

November 20, 2015

The KC Wheat versus Chicago wheat spread is struggling as rain hit the Texas and Oklahoma regions in a timely fashion. The prospect of a drought has weaned along with the prices for KC Wheat. The difference between these two drought monitors really tells a lot of the story. You can see in the December…

Another Exit On Feeders

November 6, 2015

The feeder cattle futures spread has again worked its way down to a point of profitability. However, this is only for those of you who added an additional position at $4.00+. This would have put you at an average of about $3.25 for a profit of $750 (minus fees) for the two spreads. While it…

Hog Bear Spread Exit Opportunity

October 28, 2015

After the run up to near zero, the December versus February leans hogs seasonal spread has settled back down around the -3.00 mark. After looking at the intraday trading range, it actually hit the exit target of -3.50 that I suggested in the October spread update. There were only 17 spreads traded at this point…

2015 October Spread Update – A Good Test

October 22, 2015

The first around with the feeder cattle bear spread, things worked very quickly. That was great, but it is not normal. Many times we are reversing a trend with a spread so at least some drawdown is to be expected. Given the nature of this trading strategy, it is prudent to properly leverage so drawdowns…