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Today I'm looking at a bear spread in Live Cattle.

Live Cattle are cattle from the calf stage up until they reach the 600-800 pound mark, which usually takes around six to ten months.

In recent times cattle in somewhat of a downtrend. High feed costs have hurt farmers and as a result we've seen cattle numbers tighten as stock got sold off.

The trend in the front month futures has been down but we have seen buying continuing to come in around the 125.0 area.

In the above spread we can see that there is a seasonal window beginning on the 6th May. Price seems to be bouncing off 1.0 and looks to be a good place to try and enter.