Managed money continues to hold a limited net long position in live cattle futures as these large funds trimmed their positions during the week ended Tuesday, Nov. 10.
The Commodity Futures Trading Commission’s weekly Commitments-of-Traders report Friday said managed money had a net long position Tuesday of 5,207 contracts, down 4,012, or 43.5%, from 9,219 the previous week.
At the same time, commercial traders, or those who theoretically could make or take delivery of a futures contract, increased their net short position by 3,555 contracts, or 13.6%, to 29,609 contracts from 26,054 the previous week.
The CFTC said that managed money arrived at their new position by adding 551 new long positions and 4,563 new short positions along with 5,274 spread positions. This left them representing 18.9% of total long open interest and 16.9% of total short open interest.
Commercials got to where their new net short position by liquidating 2,407 long positions and adding 1,148 new short positions, leaving them in control of 23.2% of total long open interest and 34.3% of total short open interest.
Total live cattle open interest during the latest CFTC reporting week rose marginally to 267,394 contracts from 266,660, an increase of only 734, or 0.28%.
During the latest week, the most-active Dec contract fell sharply, from the Nov. 3 high of $141.72 per cwt to a Nov. 10 low of $127.42. The Nov. 10 low proved to be strong support as prices since then rebounded and then moved in a sideways pattern.
LARGE TRADERS GET SHORTER CORN
During the latest reporting week, large participants either reduced their net long positions or increased their net short positions in corn futures, CFTC figures showed.
Managed money cut its net long position to 19,860 contracts from 29,015 during the week, a decline of 9,155 contracts, or 31.6%.
At the same time, commercial traders dropped their net short position by 2,945 contracts, or 0.95%, to 312,381 from 309,436 the previous week.
The CFTC said managed money arrived at their new net long position by liquidating 9,356 long positions and covering 201 short positions while adding 10,027 spread positions. This left them representing 15.4% of total long open interest and 13.9% of total short open interest.
Commercial traders arrived at their new net short positions by adding 10,291 long contracts and 13,236 new short positions. This left them in control of 23.3% of total long open interest and 46.4% of total short open interest.
Total open interest during the week rose slightly to 1.398 million contracts, up 47,008, or 3.48%, from 1.351 million.
The CME Group reported that the most-active Dec contract fell during the latest CFTC-reporting week to a low of $3.56 a bushel from a high the previous Tuesday of $3.82 ¼, a total drop of $0.26 1/4, or 6.87%. Since then, the contract has moved sideways to lower but still has not touched Tuesday’s low.
CASH FED CATTLE MARKETS REMAIN QUIET
Plains direct fed cattle markets traded lightly last week, with Texas reporting only a handful on a grid basis. In Nebraska and Kansas, cattle sold in a range from $126 to $126.50 per cwt, down from $134 to $135 the previous week. In the Corn Belt, cattle sold on a live basis at $124 to $124.50.
On a dressed basis, cattle sold last week at $199 to $203.50.
Wholesale beef prices Friday were lower, with the USDA choice cutout at $209.30 per cwt, down $2.50 on the day, and its select cutout at $199.05, off $1.43. For the week, choice was down $6.36, or 2.95%, from $215.66.
The choice/select spread Friday narrowed to $10.25 from $11.32 on Thursday, and there were 100 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $181.28 per cwt, down $0.87. This compares with the Nov settlement Friday of $175.07, down $0.30.