February 14, 2021
Just Liquidated our Long Position in Lean Hogs
Aggressively Adding to our Longs in Cattle
While I think the Hog market will probably end up trading a lot higher, we did some profit-taking on Friday and moved to the sidelines…expecting some degree of consolidation or pull back.
WE ARE NOW SIDELINES IN THE HOG MARKET.
The truth is, where I have been the most bullish is in the Cattle Complex…which I believe is beginning a MAJOR upside explosion.
With this in mind, we were adding to our Cattle positions Friday and will be doing so again when trading resumes on Tuesday.
As I keep saying, as Americans (and the world) begin living again, including the possibility of renewed social gatherings and the reopening of the entire restaurant/food service industries, I think meat consumption will be going through the roof. I might be dead wrong, or just stupid, in saying so, but I SEE NOWHERE FOR MEAT PRICES TO GO EXCEPT SHARPLY HIGHER FROM NOW UNTIL LATE SUMMER.
I CONTINUE TO RECOMMEND OWNING CALLS IN BOTH OF THE MARKETS SHOWN BELOW.
Give me a call if you want to talk about this idea…or anything else.
All option prices in this newsletter include all fees and commissions. All charts, unless otherwise noted, are by Aspen Graphics and CRB.
The author of this piece currently trades for his own
account and has a financial interest in the following derivative products
mentioned within: Feeder Cattle, Live Cattle