Funds Continue Buying Cattle

Large commodity investment firms, called managed money, continued to extend their collective net long live cattle futures position, while hedgers lengthened their net short position in the week ended Tuesday.

The Commodity Futures Trading Commission, in its weekly Commitments of Traders report Friday, said managed money’s Tuesday live cattle net long position came to 81,094 contracts, up from 75,325 the previous week and their largest since March 13 when it was 86,701 contracts.  The latest week-over-week move was up 5,769 contracts, or 7.66%.

Commercial traders’ (those hedgers) collective net short cattle futures position Tuesday amounted to 150,647 contracts, up 4,466, or 3.06%, from 146,181 the previous Tuesday and their largest since March 27 when it was 150,778.

The CFTC said managed money arrived at their new net long cattle position by adding 5,023 long positions, covering 746 short positions and unwinding 2,759 spread positions.  This left their position representing 29.3% of total long open interest, 5.2% of total short open interest and 11.8% of total spread open interest.

Commercial traders got to where they were by adding 2,017 long positions and 6,483 short positions, leaving them in change of 10.7% of total long open interest and 55.5% of total short open interest.

The CME Group said total live cattle open interest went up during the CFTC reporting week to 336,533 contracts, compared with 324,776 the previous Tuesday, a gain of 11,757, or 3.62%.

CME Group data also showed that the most-active Dec contract rose during the CFTC week to settle at $119.47 per cwt from $117.20 the previous Tuesday.  This was a gain of $2.27, or 1.94%, to the contract’s highest close.

 

FUNDS KEEP BUYING CORN

 

Managed money continued to get less short in their collective corn futures position during the week ended Tuesday.  The new position was reported as a net short 67,387 contracts, down 57,468, or 46.0%, from 124,855 the week before.

At the same time, commercial traders extended their net short corn position to 238,189 contracts, from 197,247 the previous week, a gain of 40,942, or 20.8%.

CFTC data show that managed money arrived at its new net short corn position by adding 769 long positions, covering 56,699 short positions and placing 4,750 new spread positions.  This left them in control of 14.8% of total long open interest, 18.8% of total short open interest and 10.8% of total spread open interest.

Commercial traders got to their new net short corn position by liquidating 23,053 long positions and adding 17,889 short positions, leaving them holding 28.7% of total long open interest and 42.8% of total short open interest.

The CME Group said total corn open interest fell 48,322 contracts, or 2.79%, during the CFTC week to 1.684 million contracts from 1.732 million.

The most-active Dec corn contract rose to $3.67 ½ a bushel from $3.63 ¾.

 

CATTLE, BEEF RECAP

 

No fed cattle sold Wednesday on the Livestock Exchange Video Auction, compared with 280 that traded six weeks previous at $109.50 per cwt.

Cattle sold last week in the five-area range at $110 to $112 per cwt on a live basis, steady to up $1 from the previous week, and at $174 to $175 dressed, up $1.

The USDA choice cutout Friday was down $0.61 per cwt at $203.25, while select was off $0.24 at $191.74.  The choice/select spread narrowed to $11.51 from $11.88 with 81 loads of fabricated product sold into the spot market.

The CME Feeder Cattle index for the seven days ended Thursday, was $158.18 per cwt, up $0.37.  This compares with Friday’s Oct settlement of $157.77, up $0.80.