DEC–FEB LEAN HOG SPREAD (HEZ26-HEG27) - WALSH PURE SPREADER

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RICH MORAN                                                                                                                        8/4/2026

DEC–FEB LEAN HOG SPREAD (HEZ26-HEG27)

The Lean Hogs market has not been very impressive lately.  As Feeders and Live Cattle keep impressing us with their maintained strength, the Lean Hogs keep going back to test their lows.  For DEC Lean Hogs, that is the $73.00 area.  The DEC Lean Hogs (HEZ26) have dipped below the $73.00 mark, but have had a difficult time staying there.  They spent the entire month of June gliding along and bouncing off that mark.

While this market action has been taking place in the DEC Lean Hogs, the DEC-FEB Lean Hog Spread (HEZ26-HEG27) has been hovering around -$3.80, but not able to stay below that level.  Recently, HEZ26-HEG27 has been mostly directional with the front month leading the way.

If the DEC Lean Hogs can bounce again near the $73.00 level, maybe the DEC-FEB Spread will bounce with it. I think this could be a good short term risk reward trade.  I am suggesting we work a bid to buy DEC-FEB Lean Hog Spread (HEZ26-HEG27) at -3.800.

If filled, Risk 0.300 (price of -4.100) or $120 Per Spread to make 1.400 (price of -2.400) or $560.00 Per Spread.

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Rich Moran

Senior Commodities Broker

RMoran@walshtrading.com

Direct: (312)985-0298 

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