OCT-FEB LIVE CATTLE SPREAD (LEV26-LEG27) - WALSH PURE SPREADER

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RICH MORAN                                                                                                                        7/28/2026

OCT-FEB LIVE CATTLE SPREAD (LEV26-LEG27)

As I look at the spread action in the Feeder Cattle today, I am thinking how can we try to benefit from this.  Starting with SEPT ’26 Feeder Cattle (GFU26) that was up $5.30 today and going through APR ’27 Feeder Cattle (GFJ27) that was down $3.55 today, all of the Feeder Cattle spreads were significantly higher.

I am certainly not going to suggest fighting this recent trend by selling Feeder Cattle spreads.  My gut tells me to jump in, follow the trend, and buy Feeder Cattle spreads.  But what if there is a correction after this strong move up? 

The Feeder Cattle further back in the calendar are getting relatively less expensive than the Feeder Cattle in the front months.  Maybe as a result of this, Live Cattle will be sold at a lower price down the road as well. This is a very simple thought process, but in terms of risk/reward, it might be worth putting on a long position in a Live Cattle spread. 

I am suggesting that when the market opens tomorrow morning, try to buy the OCT-FEB Live Cattle spread (LEV26-LEG27) at +0.500 or better.  If you are not able to buy it there on the open, leave a resting (GTC) order in to buy the spread at that price.

Risk 1.800 or $720 to make 2.700 or $1,080 Per Spread, plus fees and commissions.

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Rich Moran

Senior Commodities Broker

RMoran@walshtrading.com

Direct: (312)985-0298 

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