Friday, August 23, 2013

Time to exit ahead of Cattle on Feed?

It's fair to say that our Live Cattle/Lean Hogs spread has been a little bit of a grind throughout.

On a couple of occasions we just about got stopped out only to survive by a couple of ticks.

A few times it's looked like it might break out of its range to the upside but for whatever reason that never eventuated.

On Friday we have the release of this months cattle on feed report.

Whilst it is expected to show cattle producers have fewer cattle, as with any data release it's always a gamble to hold into.

For that reason I think it might be time to take this one off and lock in a tidy profit. The seasonal window runs until Thursday next week, but it's often a good idea to exit before that date to avoid those who trade off the windows alone.

It does have to be said that I'm still very much bearish on lean hogs, however I really just want to lock in a profit with the data coming out and the seasonal window coming to a close. We also still have our hog bear spread in play so being a little less reliant on one leg is never a bad thing.

Here's a preview of what to expect from the cattle on feed report:

Cattle on feed via Cattle Network

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