June cattle/hog spread, it is ugly because of the low volume. It really does jump around a good bit. I have traded it for several years since ITZ first mentioned it. I think his rationale for the short trade is very sound based on both the seasonality of hog reproduction and the seasonal pattern of cattle feeding. It currently seems to be outside of the usual trading range so when it drifted higher on Friday, I added to my short position. I am doubtful that it will break its previous high at 45. On the other hand, I think there is a good chance it will dip below the recent low of 32.225.

Best wishes,

dhm