Posts: 13,047
Registered: ‎02-06-2014
Accepted Solution

Lean Hog futures vs. cash

Don't know a lot about the business anymore.


I've been short LH for a while for purely technical reasons with modest success.


But it appears to me that it is darn hard to know what the "cash" price is in anticipation of convergence with the (cash settled) futures.


Apparently if you take the national average base price and add about $3 to it (I'm speculating that is about what most producers get after premiums) that's about right.


Any thoughts?