Long LCJ12 vs. Short FCJ12 Spread

Apr. Live Cattle vs. Apr. Feeder Cattle Spread

Is it ready for a pop..?

Long LC @ 126.550
Short FC @ 154.025
Prices @ 12:36 pm CT 01/18/12

Price calculated @ -263.925 cwt
Chart and Trade Calculations:

LC @ 126.550 Cents per lb. x 40,000 = $50,620
FC @ 154.025 Cents per Lb. x 50,000 = $77,012.50

$50,620 minus $77,012.50 = $26,392.50 divided by 100 = -263.925 cwt

see attached chart

 

I don't know but I am long June LC / Short May FC( 3-2 ) since October based on seasonals and it's not really my best trade of the year...LOL

 

let me give u an advice:



U DON'T TRADE LIVE CATTLE/FEEDER SPREAD unless u want to lose



why? because oil and water do not mix

 

Your advice is worthless. Where there is potential for loss there is potential for gain.

To make such a blanket statement only demonstrates profound ignorance.

 

No corn position? If i were to trade the live/feeder spread, i would add a corn position. That would become a crush spread:


1 Corn/2FC/4LC


Why? Because, their outright prices are determined by the price of corn. The spread between them is a functionn of corn prices / Cost of Gain



More than 90% of small traders lose. They just lose!

BTW, your spread sounds like joe ross (loser)

 

I think your posts sound like you have a severe thinking disorder!

 

Really ??? I didn't know that.

I am quite sure it's because they lack higher education.

 

Dude just put that guy on ignore. I did months ago and it's been smooth sailing since.

 

they are a loser because lack higher education:


http://en.wikipedia.org/wiki/Agricultural_economics


Agricultural economics originally applied the principles of economics to the production of crops and livestock — a discipline known as agronomics. Agronomics was a branch of economics that specifically dealt with land usage. It focused on maximizing the crop yield while maintaining a good soil ecosystem. Throughout the 20th century the discipline expanded and the current scope of the discipline is much broader. Agricultural economics today includes a variety of applied areas, having considerable overlap with conventional economics.

 

...................................

that is what makes a market.

lets all plan to reconvene in a few months and see how it plays out.

in the meantime tell an old cattle trader what a " beef sandwich trade " setup is.......

lets see how smart the OP really is or just pissing in the tall grass.

emg, you don't get to play............

s