Commodity Spreads Trading Setups: May 2017

Date of analysis: April 29, 2017
At the beginning of April I entered with 3 contracts into Sugar spread at price 0.6. Position is still open with open loss of 200 USD. I didn’t trade spreads marked as “less favorite”, quite pity, because both of them (GFQ17-GFK17, HEN17-HEM17) would made nice profit.

List of calendar commodity spreads I consider to trade in May.

Buy Live Cattle: LEG18 – LEV17

long February 2018 Live Cattle and short October 2017 Live Cattle.

Optimized entry date is May 9th, I will wait for entry signal around this date. Correlation within the trading window between Live Cattle spread and seasonal patterns is higher than 90%. 93% of winning trades with average profit of 500 USD per ct in last 15 years.

Also I am watching similar spread LEG17-LEZ17.

(click on image to enlarge in new window)commodity trading setup idea seasonal futures spread live cattle leg18 lev17

Buy Soybean Oil: ZLZ17 – ZLU17

long December 2017 Soybean Oils and short September 2017 Soybean Oil.

The market is ranging since middle of February. Although the trading window starts on May 14th, it is possible to open the position if price break the price channel.

Another Soybean Oil I consider to trade is ZLZ17-ZLU17.

(click on image to enlarge in new window)commodity trading setup idea seasonal futures spread soybean oil zlz17 zlu17

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