Large funds and commercial traders are holding their live cattle net long and net short positions in narrow ranges as nearby contract prices traded in a wide range. Neither has made a significant position change since the week ended Tuesday, Nov. 3.
Managed money, a proxy for those large commodity funds, reduced their net long position by 1,693 contracts, or 25.1%, to 5,046 from 6,739 during the week ended Tuesday, according to the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
At the same time, commercial traders, those who theoretically could make or take delivery of a futures contract, reduced their net short positions by 893 contracts, or 2.84%, to 30,529, from 31,422.
The CFTC reported that managed money arrived at its new net long position by liquidating 695 long positions and acquiring 998 fresh short positions along with 141 new spread positions. The move left them in control of 19.6% of total long open interest and 17.7% of total short open interest.
Commercial traders arrived at their new net short positions by buying 2,667 new long positions and adding 1,774 short positions, leaving them representing 24.3% of total long open interest and 35.5% of total short open interest.
The CME Group reported that total live cattle open interest increased marginally during the CFTC week to 278,853 contracts from 272,714, a rise of 6,139, or 2.25%.
The most-active Feb contract traded in a wide range during the latest CFTC reporting week, settling Tuesday at $128.02 per cwt compared with $128.32 the previous week. In between, the contract hit a high of $135.10 on Thursday, Nov. 12, and a low of $125.50 on Tuesday, Nov. 17.
FUNDS GET SHORTER CORN
During the same CFTC reporting week, managed money increased its net short corn position to 79,859 contracts from 53,164, an increase of 26,695, or 50.2%. This is the largest net short position the funds have had since the week ended Tuesday, June 23, when it was 122,968 contracts.
Meanwhile, commercial traders decreased their net short position to 236,047 contracts from 253,460, a decline of 17,413, or 6.87%. This is the lowest net short position for these traders since the week ending Tuesday, June 23, when it was 145,598.
The CFTC said managed money arrived at its new net short position by liquidating 14,910 long positions and taking on 11,785 short positions while unwinding 3,444 spread positions. The moves left them representing 12.2% of total long open interest and 17.9% of total short open interest.
Commercial traders arrived at their new net short position by liquidating 9,707 long positions and selling 7,706 new short positions. This left them representing 25.5% of total long open interest and 42.4% of total short open interest.
The CME Group reported total corn open interest during the CFTC week declined 93,930 contracts, or 6.69%, to 1.31 million from 1.40 million.
During the week, the most-active Mar corn contract rose to close at $3.64 ¼ a bushel from $3.62 the previous Tuesday, an increase of $0.02 ¼, or 0.62%. In late-week trading last week, the contract gave up all of this gain.
CASH FED CATTLE MARKETS QUIET
Cash fed cattle markets last week were almost inactive, with nearly all of the trading waiting until the futures market closed Friday afternoon. Kansas sold around 5,000 head at $124 to $127 per cwt, and about 4,000 head traded in dressed-basis markets at $195. Both were about steady with the previous week.
Wholesale beef prices Friday were higher, with the USDA choice cutout at $204.40 per cwt, up $0.31 on the day, and its select cutout at $195.52, up $1.74. The choice/select spread narrowed to $8.90 from $10.33 on Wednesday, and there were 59 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $172.16 per cwt, unchanged from Wednesday. This compares with the Jan settlement Friday of $166.02, up $1.05.