Large commodity investment funds, known as managed money, cut their collective net long live cattle futures position in the week ended Tuesday while hedgers trimmed their combined net short position, according to the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday.
FUNDS REDUCE CATTLE EXPOSURE
As of Tuesday, the CFTC listed managed money’s overall net long position at 43,618 contracts, down 3,307, or 7.05%, from 46,925 a week earlier. It was the first decline in their net long position after three weeks of gains.
Similarly, those hedgers, known as commercial traders, since they own the cattle at some point, cut their collective net short live cattle position to 117,188 contracts, down 1,003, or 0.85%, from 118,191 a week earlier. It was their second straight dip in their net short position.
The CFTC said managed money arrived at their new net long cattle position by liquidating 618 long positions, adding 2,689 short positions and putting on 2,821 spread positions. This left managed money in charge of 23.1% of total long open interest, 8.4% of total short open interest and 13.2% of total spread open interest.
Commercials got to their new short cattle position by liquidating 381 long positions and covering 1,384 short positions, leaving them in charge of 13.6% of total long open interest and 53.3% of total short open interest.
The CME Group said total live cattle open interest Tuesday stood at 295,121 contracts, up 4,476, or 1.54%, from 290,645 a week earlier.
CME Group data also showed that the most-active Feb contract rose in value in the CFTC reporting week to settle Tuesday at $115.05 per cwt, compared with $114.57 a week earlier.
FUNDS GET LONGER CORN
Meanwhile, managed money’s net long corn position jumped in the week ended Tuesday to 328,208 contracts, up 19,045, or 6.16%, from 309,163 a week earlier. It was their largest net long position in more than a year.
And commercial traders’ new net short Chicago corn position as of Tuesday amounted to 770,323 contracts, up 36,505, or 4.97%, from 733,818 a week earlier. It was their largest net short position in more than a year.
The CFTC said managed money arrived at their new net long corn position by adding 14,068 long positions, covering 4,977 short positions and putting on 7,986 spread positions. This left them in control of 22.3% of total long open interest, 3.9% of total short open interest and 8.9% of total spread open interest.
Commercials got to their new position by adding 113,188 long positions and 49,693 short positions, leaving them with 22.9% of total long open interest and 66.3% of total short open interest.
CATTLE, BEEF RECAP
Fed cattle trading was reported in the Plains last week at $110 to $112, steady with the previous week. Dressed-basis trading was reported at $175 to $177 per cwt, down $1 to up $1.
The USDA choice cutout Friday was up $0.99 per cwt at $206.80, while select was up $0.10 at $196.69. The choice/select spread widened to $10.11 from $9.22 with 118 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.18 to $1.25 a bushel over the Mar CBOT futures contract, which settled at $4.96 1/4 a bushel, up $0.02 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $135.63 per cwt, up $0.28. This compares with Friday’s Jan contract settlement of $135.82 per cwt, down $0.87.