When the market supply is insufficient, the demand is strong or the long-term supply is relatively strong, the bull market spread can be applied-in these two cases, the price of futures contracts delivered in recent months will increase more than that delivered in far months, or the price of futures contracts delivered in recent months will decrease less than that delivered in far months. Therefore, in both cases, the operation of bull spread (buying futures contracts delivered in the near month and selling futures contracts delivered in the far month at the same time) is more likely to make a profit than to lose money.
Friends who are going to carry out the cattle price difference operation should pay attention to it. Generally speaking, the cattle price difference is more effective for storable goods in the same crop year. The storable commodities that can be used for long-term trading are usually soybeans, wheat, cotton, sugar, copper and so on. And it is not suitable for non-storable commodities, such as pigs and live cattle.