Trading 2 Soymeal Vs 12 Wheat-Lean Hogs spread

Discussion in 'Commodity Futures' started by TraDaToR, Nov 12, 2009.

  1. TraDaToR

    TraDaToR

    Which one is best?

    Just a joke. I'm asking so that Increase now don't have to.

    Now, I stop. I want this forum to remain as it was...before.:D
     
  2. I just can't wait until he finds out what feedlot board margin (aka "cattle crush") is....it'll blow his little mind...just like...BANG! :D :D
     
  3. cattle crush is simply a ratio spread simulating feeding cattle on paper.

    Buy 2 feeders, sell 3 fats 4 months out, and buy 1 corn in the middle. Thats the simple version....once you see some of the nuances of cattle feeding/seasonals/spread price discrepancies, you'll weight it / trade it differently.