Large commodity investment funds, called managed money, cut their collective net long live cattle futures position in the week ended Tuesday, Oct. 6.
At the same time, commercial traders, those who own the cattle and use the futures market primarily for hedging, cut their collective net short position to its lowest point in two months.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS CUT LONG CATTLE POSITION
Last Tuesday, managed money had a collective net long live cattle position of 57,329 contracts, down 2,434, or 4.07%, from 59,763 a week earlier. These traders have held their net long position within a narrow range for seven weeks.
Commercials last Tuesday had a collective net short cattle position of 127,408 contracts, down 7,722, or 5.71%, from 135,130 a week earlier. It was their lowest net short position since Aug. 4 when it was short by 118,320 contracts.
The CFTC said managed money arrived at their new net long cattle position by liquidating 3,840 long positions, covering 1,406 short positions and unwinding 297 spread positions. This left their position representing 26.1% of total long open interest, 6.5% of total short open interest and 14.4% of total spread open interest.
Commercials got to where they were by adding 1,072 long positions and covering 6,650 short positions, leaving them holding 8.4% of total long open interest and 51.9% of total short open interest.
The CME Group said total live cattle open interest last Tuesday stood at 292,713 contracts, down 10,828, or 3.57%, from 303,541 a week earlier.
CME Group data also showed that the most-active Dec live cattle contract declined in the week ended last Tuesday to settle at $111.95 per cwt, compared with $113.12 a week earlier.
FUNDS KEEP BUYING CORN
Meanwhile, managed money continued to expand their collective net long position in Chicago corn futures, going to 117,284 contracts from 84,748. This is a gain of 32,536, or 38.4%. It also was their largest net long position in more than a year.
Commercials extended their collective net short corn position to its largest in more than a year, going to being short by 367,536 contracts, a gain of 55,864, or 17.9%, from 311,672.
The CFTC said managed money arrived at their new net long corn position by adding 12,074 long positions, covering 20,462 short positions and putting on 1,727 new spread positions. This left them in control of 14.5% of total long open interest, 7.0% of total short open interest and 12.2% of total spread open interest.
Commercials got to their new short corn position by liquidating 8,856 long positions and adding 47,008 short positions, leaving them with 28.6% of total long open interest and 52.3% of total short open interest.
Total corn open interest rose to 1.550 million from 1.514 million.
CATTLE, BEEF RECAP
Fed cattle trading this week was seen at $109 per cwt on a live basis, steady to up $2 from last week. Dressed-basis trading was reported last week at $167 to $170 per cwt, up $3 to $6.
The USDA choice cutout Monday was up $0.56 per cwt at $214.62, while select was up $0.52 at $200.34. The choice/select spread widened to $14.28 from $14.24 with 99 loads of fabricated product and 28 loads of trimmings and grinds sold into the spot market.
There were no delivery notices against the Oct live cattle futures market Monday.
The CME Feeder Cattle Index for the seven days ended Friday was $141.23 per cwt, down $0.59. This compares with Monday’s Oct contract settlement of $137.30 per cwt, down $0.95.