I am Stephen Davis, senior market strategist at Walsh Trading, Inc., Chicago, Illinois. You can reach me at 312-878-2391.

I continue to like bull spreads in the live cattle markets. In the past few weeks, I had clients who were long August live cattle and short October live cattle. Last week that spread moved out to 6.00 points ahead of the first notice day on August 4. This was a fantastic strategy that paid off. 

The next bull spread is buying October live cattle and selling December live cattle. In my opinion, this spread could move out in similar fashion 3.00, 4.00 or 5.00 points. 

First notice day for October 2025 live cattle is Monday, October 6. You could be in this spread for many weeks.

This is a simple strategy and very conservative.  Even in a down market, I think December live cattle will fall more than October live cattle, which is another win-win for this spread strategy. 

Lower cattle placements, tight cattle supplies, Mexican border issues and higher cash cattle prices continue to drive the market. In addition, negotiations that could result in an end to Brazil's cattle exports to the U.S. are another bullish factor. 

In my opinion, bull spreads will work again in the weeks ahead.

Have an excellent day and call me anytime at 312-878-2391 to discuss strategies.

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Stephen Davis
Senior Market Strategist 
Walsh Trading

Direct 312 878 2391 
Toll Free 800 556 9411
sdavis@walshtrading.com  
www.walshtrading.com

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