Feeder Cattle Trade Idea
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For those interested I hold a weekly livestock webinar on Tuesdays. My next webinar will be Tuesday, September 15, 2026, at 3:15 pm. If you cannot attend live a recording will be sent to your email upon completion of the webinar.
We believe feeder cattle supplies remain tight. We think they will get even tighter as we move towards the winter. Even with the Mexican border re-opening and the import increases and potential tariff cancellations (doesn’t do anything to increase cattle numbers) we believe cattle will be hard to find and prices will rebound as feedlots scramble to buy cattle to fill their yards. A trade strategy for this scenario is as follows:
Trade Strategy:
Feeder Cattle Opportunity:
Sell the January 2027 Feeder Cattle 330/320 put spread for 700 points a $3,500.00 credit. Buy
the March Feeder Cattle 340 Call for 450 points a $2,250.00 debit.
- Premium collected: $1,250.00, less commissions and fees(250 points) per spread
- Maximum risk: $3,750, plus commissions and fees per spread
**Call me for a free consultation for a marketing plan regarding your livestock needs.**
Ben DiCostanzo
Senior Livestock Analyst
Walsh Trading, Inc.
Direct: 312.957.4163
888.391.7894
Fax: 312.256.0109
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