Just to be sure, Long hogs/ Short Cattle? Any specific relative value reason other than their late trends?
Liquidated Half MW Dec/Mar @ -13.75 before grains stocks but since expectations are already super bearish, I might keep half. Short Apr/Jun/Aug Cattle fly @ 5.550. Didn't like the way I entered. I had to chase it for one week.
Where do you find the cash index ? Any research on the effet of cash index future market ? On Euronext and on near expiries, futures tend to converge to the cash market !
DTN. CME Lean Hogs Index.Exactly, which is why you should be aware that cash and Oct will converge at expiration. It is early now, but in the last few days it has an important influence on price. More than usual the cash price fills the gap though...
Kind of. You have to check the lean hogs chapter in the CME rulebook. The index is an average of cash prices of the previous 2 days if I am right.