The next Cattle on Feed report is scheduled for Friday, August 21. Pre-report estimates are looking for Cattle on Feed numbers to come in at 102.5% of last year, totaling 11.2 million head.
Placements are also expected to fall by 6.2% versus last year, dropping to 1.498 million head. Meanwhile, plant shutdowns continue to pressure the market, and the first phase of the southern border reopening is scheduled for Monday, August 24. With cattle futures already trending lower, the downtrend could continue in the near term as producers and traders reduce risk ahead of these events.
Please consider the following opportunity:
FEBRUARY’27 LIVE CATTLE 218.82 ½
BUY 1 FEBRUARY’27 214 PUT 7.57 ½
SELL 1 FEBRUARY’27 208 PUT 5.45
SELL 1 FEBRUARY’27 226 CALL 6.32 ½
BUY 1 FEBRUARY’27 232 CALL 4.35
PRICE: 0.15
COST: $60.00/TRADE PACKAGE, PLUS FEES AND COMMISSIONS
FEBRUARY’27 LIVE CATTLE OPTIONS EXPIRE 2/5/27 (170 Days)
MAXIMUM LOSS: LIMITED
This trade is buying a put spread and selling a call spread to help finance it. Please contact me for strategies in Live Cattle, Feeder Cattle, or any other futures markets.
Feeder Cattle Index 8/18/2026: 342.36
Feeder Cattle Index 8/12/2026: 351.93
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Hans Schmit
Broker, Pure Hedge Division
312-765-7311
hschmit@walshtrading.com
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.
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