Both of the main players in the live cattle futures market were angling their positions toward the short side during the week ended Tuesday, according to Commodity Futures Trading Commission data.
The information came from the CFTC’s Commitments of Traders report Friday.
The report said managed money’s, a proxy for large commodity investment firms, new net long cattle position stood at 77,329 contracts, down 2,638, or 3.30%, from 79,967 the previous Tuesday. Their new position also was down from the most recent high two weeks ago of 82,175 contracts.
As of Tuesday, the net short position of hedgers, known as commercial traders, stood at 145,768 contracts, up 1,089, or 0.75%, from 144,679 a week earlier, which was up from 142,573 the week before that. It was their largest net short position since June 4 when it was 153,140 contracts short.
The CFTC said managed money arrived at their new long cattle position by liquidating 282 long positions, adding 2,356 short positions and unwinding 819 spread positions. This left their position representing 28.9% of total long open interest, 8.7% of total short open interest and 15.6% of total spread open interest.
Commercials got to their new short cattle position by adding 1,400 long positions and 2,489 short positions, leaving them holding 11.5% of total long open interest and 49.6% of total short open interest.
The CME Group said total cattle open interest as of Tuesday stood at 383,315 contracts, down 1,485, or 0.39%, from 384,800 the week before.
CME Group data also showed that the most-active Feb delivery month had negligible net movement during the week ended Tuesday, settling at $125.65 per cwt, compared with $125.67 the week before. However, the contract moved up to a contract high of $127.15 per cwt on Friday.
FUNDS COVER SHORTS; REMAIN NET SHORT
During the CFTC reporting week, managed money covered short positions in the corn contract but remained in a net short position.
Managed money’s new position was short corn by a net 85,582 contracts, down 31,365, or 26.8%, from 116,947 a week earlier and down from their most recent high of 138,815 two weeks previous.
Meanwhile, commercial traders extended their net short position to 240,643 contracts from 227,196 the week before, a gain of 13,447, or 5.92%. It was their largest net short position since Sep. 3 when it was short by 245,477 contracts.
The CFTC said managed money arrived at its new short corn position by adding 13,445 long positions, covering 17,920 short positions and putting on 13,702 spread positions. This left their position representing 10.5% of total long open interest, 16.4% of total short open interest and 16.1% of total spread open interest.
Commercials got to their new position by liquidating 61,133 long positions and covering 47,686 short positions, leaving them with 27.1% of total long open interest and 43.7% of total short open interest.
CATTLE, BEEF RECAP
Cash cattle trading was reported last week at $118 to $119.50 per cwt on a live basis, up $0.50 to $1 from the previous week. Dressed-basis trade was reported at $188 to $190 per cwt, up $1 to $3.
The USDA choice cutout Friday was down $1.04 per cwt at $224.56, while select was off $0.82 at $207.30. The choice/select spread narrowed to $17.26 from $17.48 with 100 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday was $144.49 per cwt, down $0.04 from the previous day. This compares with Friday’s Jan contract settlement of $141.55, up $1.00.