Managed money boosted its live cattle net long position during the week ended Tuesday, reversing a four-week slide, while commercial traders increased its net short position for the first time in four weeks.
The Commodity Futures Trading Commission Friday released its weekly Commitments Of Traders report showing the latest stance of the two largest trading groups.
Managed money, or commodity investment funds, increased their net long cattle position by 3,892 contracts, or 19.4%, to 23,973 contracts from 20,081 a week earlier, the CFTC said.
Commercial traders, those who theoretically could make or take delivery of a futures contract, had a net short position of 61,709 contracts, up 2,695, or 4.57%, from 59,014 the previous week, according to CFTC data.
The CFTC said managed money arrived at its new net long cattle position by adding 1,751 long positions and covering 2,141 short positions while unwinding 179 spreads. This left them representing 30.0% of total long open interest and 20.8% of short open interest.
Commercials arrived at their new net short position by liquidating 1,877 long positions and adding 818 shorts to leave them in control of 13.5% of total long open interest and 37.1% of total short open interest.
Total cattle open interest during the latest CFTC week was 261,570 contracts, up a scant 460 contract, or 0.18%, from 261,030 the previous week, CME Group data showed.
During the week the most-active Dec futures contract rose $1.23 per cwt, or 1.16%, to close at $107.05 per cwt from $105.82, CME Group data showed. Since then, the contract has set a swing high of $108.90 and turned lower.
FUNDS, COMMERCIALS INCREASE NET SHORT CORN POSITION
Managed money and commercial traders increased their net short corn position in the latest CFTC reporting week amid prospects for a very large crop.
Managed money increased its net short position during the week to 156,033 contracts from 151,547, a gain of 4,486, or 2.96%, the CFTC said.
At the same time, commercials raised their net short corn position to 159,962 contracts from 143,606, a rise of 16,356, or 11.4%.
Managed money arrived at its new net short corn position by adding 5,230 long positions and 9,716 shorts while unwinding 161 spreads. This left them representing 13.9% of total long open interest and 25.9% of total short open interest.
Commercials got to their latest reported net short position by liquidating 2,585 long positions and adding 13,771 short positions, leaving them in control of 45.9% of total long open interest and 38.2% of total short open interest.
Total corn open interest for the week ended Tuesday rose 16,084 contracts, or 1.25%, to 1.300 million from 1.284 million, according to CME Group data.
The most-active Dec corn futures contract set a swing low during the week of $3.26 ½ a bushel while rising from a close of $3.30 to $3.40 ½. The contract has since given up most of these gains.
CASH CATTLE MARKETS LIGHTLY TRADED
Cash cattle trading was very light last week with trading down about $4 per cwt on a live basis at $106 and at $166 to $168 on a dressed basis.
Limited cash trade was reported in Iowa earlier at $168 per cwt dressed. Otherwise, asking prices ranged from $112 to $115 live.
The USDA’s choice cutout Friday was $0.56 per cwt lower at $186.81, while select was off $0.81 at $178.81. The choice/select spread widened to $8.00 from $7.75 with 89 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $136.10 per cwt, down $0.01. This compares with the Sep settlement Friday of $136.82, down $0.17.