Large commodity investment funds, known as managed money, again increased their collective net long live cattle futures position during the week ended Tuesday as hedgers increased their net short position.
Both moves were a continuation of trends that began the week ended Nov. 27. The data was released by the Commodity Futures Trading Commission Friday in its weekly Commitments of Traders report.
Managed money’s new net long live cattle position as of Tuesday was 152,593 contracts, up 4,002, or 2.69%, from 148,591 the previous Tuesday. It was their largest net long position in more than a year.
Commercial traders, those who own the cattle and primarily are hedgers in the futures market, had a new net short position of 223,966 contracts, up 2,504, or 1.13%, from 221,462 a week before. It also was their largest short position in more than a year.
The CFTC said managed money arrived at its new net long cattle position by adding 5,129 positions, 1,129 short positions and 981 spread positions. This left their total position representing 37.2% of total long open interest, 3.2% of total short positions and 13.3% of total spread open interest.
Commercial traders got to where they were by liquidating 4,199 long positions and covering 1,695 short positions, leaving them in control of 6.8% of total long open interest and 56.7% of total short open interest.
CME Group data showed total live cattle open interest Tuesday was 448,899 contracts, up 5,110, or 1.15%, from 443,789 the previous week.
CME data also showed that the most-active Jun contract rose in value during the week ended Tuesday to settle at $122.45, up from $120.35 the week before.
FUNDS AGAIN SHORT CORN
Managed money again extended their net short corn position during the week ended Tuesday to end with a position that was 326,887 contracts south of unchanged, up 37,028, or 12.8%, from 289,859 the previous Tuesday. It was their largest short position in more than a year.
Commercial traders again cut their net short corn position to 33,403 contracts from 53,618 the previous week, a decline of 20,215, or 37.7%. It was their lowest net short position in more than a year.
The CFTC said managed money arrived at its new short corn position by adding 1,464 long positions, 38,492 short positions and unwinding 13,255 spread positions. This left their position representing 10.1% of total long open interest, 28.2% of total short open interest and 12.6% of total spread open interest.
The CME Group said total corn open interest as of Tuesday was 1.811 million contracts, up from 1.749 million the previous Tuesday, a gain of 62,108, or 3.55%.
CME data also showed the most-active Jul corn contract had an overall decline during the CFTC week to $3.67 ¾ a bushel from $3.68 ½, a decline of $0.00 ¾.
CATTLE, BEEF RECAP
Cash cattle trading last week was reported in the Plains at $126 per cwt up to $128, steady to up $2 from the previous week. Dressed-basis trade was reported at $207 to $208, up $3.
The USDA choice cutout Friday was up $0.59 per cwt at $233.65, while select was up $1.03 at $220.49. The choice/select spread narrowed to $13.16 from $13.60 with 63 loads of fabricated product sold into the spot market.
There were no tenders Thursday for deliveries against the Apr futures contract.
The CME Feeder Cattle index for the seven days ended Wednesday, was $145.01 per cwt, up $1.43. This compares with Thursday’s Apr contract settlement of $145.70, up $0.37, and the May settlement of $151.52, up $0.92.