Corralling the Profits
The IMC blog is holding a short position in the November-December feeder/live cattle spread from the equivalent of +$41,820 (premium feeders). The November feeder contract expires next week, so we are going to go ahead and close out the position.
Still Heading South
Looking at the monthly timeframe, one can see that the feeder/live cattle spread has been in a downtrend since it peaked at a record high last year. There appears to be plenty of downside ahead. Therefore, we will now be monitoring the March-February feeder/live cattle spread for potential setups to get positioned back on the short side.
The blog will exit the hypothetical short position in the November-December feeder/live cattle spread at the market-on-close today on November 10th.