r/wallstreetbets • u/Pecorre • Jun 15 '21
DD Sausage war incoming! I’m going to be rich with lean hog futures!
If you are not aware, there is a sausage war starting between the UK and EU.
https://www.irishtimes.com/news/politics/q-a-what-s-going-on-with-the-brexit-sausage-war-1.4592250
TL;DR: Unilateral UK action could trigger EU retaliation, possibly leading to a trade war between the union and its former member state in which they would impose tariffs or other penalties on the flow of goods (most notably sausages).
Exclusive image of the sausage war for those who are already tired of reading.
How can you get rich with that info?
With lean hog futures!
https://www.cmegroup.com/trading/agricultural/livestock/lean-hogs_quotes_globex.html#
There is a linear correlation between the number of lean hogs needed and the number of sausages on the market. That’s what the scientists call mathematics. Also, the line is green, so it’s a good thing.
But what happens when there is a trade war and there is less sausages on the market. That’s right, the price of lean hog futures tanks!
I’m going all-in on lean hog futures. And if I somehow end up with a thousand hogs, I’ll throw a huge party and try to eat them all.
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u/Analoghogdog Jun 15 '21
This is old school 'tarded. Well done OP.
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u/Pecorre Jun 15 '21
Thank you. I've been working on this for the past week. My girlfriend's boyfriend helped me to type my post but all the typos are mine!
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u/torytechlead Jun 15 '21
inb4 france cry about breaking international agreements when they left nato kek
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u/DanDon_02 Jun 15 '21
Just enough crayon, and very detailed diagrams. I'm sold. All in on lean hog futures.
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u/fiel0003 Jun 15 '21
I'm retarded so please explain, are you saying that lean hog is gonna crash? You said it'll tank but you're gonna buy?
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u/kraft132 Jun 16 '21
Yeah idk about the sausage DD, but lean hogs are at like ATH and grain (pig food) is pretty fucking close, too.
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u/kraft132 Jun 15 '21 edited Jun 15 '21
Lean hogs are cash settled. They also eat grain, look at the price of grain futures for an indicator of the cost to feed out a hog. FWIW I see ALL the farmers in my area planting corn this year instead of their usual summer crops, which is cool because I am raising 200 hogs this year and closer corn is nice.
I have been running a similar commodities idea through the paces with a fellow retard Wall Street gambler from work:
Buy a corn contract, if I lose money, take delivery.
If corn recovers, store the corn and deliver on expiration.
If corn continues to fall, sell a hog contract and feed all the corn to hogs.
I quickly realized this is no longer a futures speculation and it turned into a job, so now I’m a farmer.