Large commodity investment funds, or managed money, increased their net long live cattle futures position for the 10th straight week during the week ended Tuesday, Jan. 22, said the Commitments of Traders report Friday.
Data show the new position was the largest net long position by managed money since Feb. 27, 2018, when it was 102,549 contracts.
The latest COT report from the CFTC showed the new collective net long live cattle position by managed money at 98,900 contracts, up 839, or 0.86%, from 98,061 the previous week.
During the same week, commercial traders, those who own he cattle and primarily do hedge trading, extended their collective net short position to 172,851 contracts from 172,294, a gain of 557, or 0.32%. It was their largest net short position since March 13, 2018, when it was 178,986 contracts.
The CFTC said managed money arrived at its new long cattle position by adding 2,316 long positions, 1,477 short positions and unwinding 1,255 spread positions. This left them representing 29.9% of total long open interest, 4.5% of total short positions and 14.1% of total spread positions.
Commercials got to where they were by liquidating 625 long positions and covering 68 short positions, leaving them in control of 11.3% of total long open interest and 55.7% of total short positions.
The CME Group said total live cattle open interest on Jan. 22 was 389,493 contracts, up from 386,858 the previous week. This was a gain of 2,635 contracts, or 0.68%.
CME Group data show that the most-active Apr contract moved lower during the CFTC week to settle Jan. 22 at $126.07 per cwt, compared with $127.42 a week earlier. In between it touched a swing high of $127.52 on Thursday, Jan. 17.
FUNDS GET LONGER CORN
Almost as if to say their cut in their collective long corn futures position the week before was overdone, managed money reversed the move and got a bit longer during the week ended Jan. 22. The new position was 33,319 contracts, up 17,625, or 112.3%, from 15,694 the previous week.
At the same time, commercials’ new corn position was short by 304,565 contracts, up 21,308, or 7.52%, from 283,257 the previous week.
The CFTC said managed money arrived at its new corn position by liquidating 4,054 long positions, covering 21,679 short positions and putting on 28,181 new spread positions. This left them in charge of 14.1% of total long open interest, 12.1% of total short open interest and 15.7% of total spread open interest.
Commercials got to where they were by liquidating 3,778 long positions and adding 17,530 short positions, leaving them in control of 26.6% of total long open interest and 44.9% of total short open interest.
Total corn open interest went to 1.661 million contracts from 1.638 million.
CATTLE, BEEF RECAP
No fed cattle sold Wednesday on the Fed Cattle Video Exchange, compared with 161 a week earlier at $124 to $124.50 per cwt.
Cash cattle trading last week took place at mostly $125, up to $126 per cwt, up $1 from the previous week. On a dressed basis, cattle traded from $198 to mostly $199 to $200, steady to up $2.
The USDA choice cutout Friday was up $0.78 per cwt at $216.85, while select was up $0.58 at $210.99. The choice/select spread widened to $5.86 from $5.66 with 69 loads of fabricated product sold into the spot market.
There were no fresh delivery notices Friday.
The CME Feeder Cattle index for the seven days ended Thursday, was $141.31 per cwt, down $0.19. This compares with Friday’s Mar contract settlement of $142.60, down $1.47.