Managed money, or commodity investment funds, cut their net long live cattle futures position for the fifth straight week as commercial traders trimmed their net short positions for the fourth week.
The Commodity Futures Trading Commission, in its weekly Commitments Of Traders report Friday said that for the week ended Tuesday, managed money’s net long live cattle position amounted to 20,081 contracts, down 4,016, or 16.7%, from 24,097 the previous week. This was 22,794, or 53.2%, lower than its peak of 42,875 the week ended Aug. 9.
During the latest CFTC reporting week, commercial traders, those who theoretically could make or take delivery of a futures contract, reduced their net short position by 1,728 contracts, or 2.84%, to 59,014 contracts from 60,742 the previous week. This was down 16,944 contracts, or 22.3%, from their most recent high of 75,958 for the week ended Aug. 23.
The CFTC reported that managed money arrived at its new position by adding 282 new long positions and 4,298 new short positions while unwinding 4,833 spread positions. This left them representing 29.5% of total long open interest and 21.7% of total short open interest.
Commercials got to their new net short position by adding 5,023 long positions and 3,295 short positions, leaving them in control of 14.3% of total long open interest and 37.0% of total short open interest, the CFTC said.
Total live cattle open interest for the week declined 2,497 contracts, or 0.95%, to 261,030 from 263,527, according to CME Group data.
CME Group data also show that the most-active Dec contract price rose to settle at $105.82 per cwt on Tuesday from its contract low of $101.27 and a close of $101.92 the previous week. From close to close, the contract rose $3.90, or 3.83%.
FUNDS, COMMERCIALS SWAP CORN POSITIONS
Managed money and commercial traders swapped net short corn positions during the latest CFTC week, with the funds becoming less short than the commercials.
The CFTC reported managed money’s net short position at 151,547 contracts, down 34,580, or 18.6%, from 186,127 the previous week.
Commercials, meanwhile, increased their net short corn position by 15,063 contracts, or 11.7%, to 143,606 from 128,543, the CFTC reported.
Managed money arrived at its new net long position by adding 3,934 new long positions and covering 30,646 short positions while unwinding 5,890 spreads. This left them representing 13.7% of total long open interest and 25.5% of total short open interest.
Commercial traders got to their new net long positions by liquidating 18,450 long positions and covering 3,387 shorts to leave them in control of 26.4% of total long open interest and 37.6% of total short open interest.
Total open interest for the week declined to 1.284 million contracts from 1.317 million, the CME Group said. This is a dip of 33,039, or 2.51%.
During the week, the most-active Dec contract rose from $3.28 ½ a bushel to $3.30, setting a swing high of $3.43 ¼ on Monday, Sep. 12.
CASH CATTLE MARKETS UP $4 TO $5
Cash cattle markets last week were up $4 to $5 per cwt at $109 to mostly $110 on a live basis. Dressed-basis markets were at $170 to $171.
The USDA’s choice cutout Friday was $0.07 per cwt lower at $186.20, while select was off $0.45 at $178.38. The choice/select spread widened to $7.82 from $7.44 with 77 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $134.46 per cwt, up $0.97. This compares with the Sep settlement Friday of $135.50, up $1.52.