Large commodity investment funds, known as managed money, increased their net long live cattle futures position in the week ended Tuesday, reversing a two-week decline, according to the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday.
The same report said commercial traders, those who own, or will own, the cattle and approach the futures market primarily as hedgers, made a small upward adjustment to their net short position in the same week.
FUNDS BOOST LONG CATTLE POSITION
Managed money’s new net long cattle position Tuesday stood at 76,825 contracts, up 1,210, or 1.60%, from 75,615 a week earlier.
Commercial traders’ new net short position Tuesday was 157,407 contracts, up 154, or 1.10%, from 157,561 a week earlier.
The CFTC said managed money arrived at their new net long cattle position by adding 1,382 long positions, 172 short positions and unwinding 4,328 spread positions. This left their cumulative position representing 28.9% of total long open interest, 5.8% of total short open interest and 11.6% of total spread open interest.
The CFTC said commercials got to where they were by adding 600 long positions and 446 short positions, leaving them with 9.8% of total long open interest and 57.1% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 334,766 contracts, down 38, or 0.01%, from 334,804 a week earlier.
CME Group data also said the most-active Jun contract rose in value during the CFTC reporting week to settle at $119.65 per cwt, up $1.90, or 1.61%, from $117.75.
FUNDS REVERSE, BOOST LONG CORN POSITION
Managed money reversed their move two weeks ago to lower their net long position in Chicago corn futures to boost it in the week ended Tuesday. Their new collective net long Chicago corn futures position Tuesday came to 338,982 contracts, up 8,143, or 2.46%, from 330,839 a week earlier.
However, commercials kept pruning their net short corn position to end up with a total short position of 761,270 contracts down 2,115, or 0.28%, from 763,385 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 10,105 long positions, 1,962 short positions and unwinding 7,646 spread positions. This left them holding 20.6% of total long open interest, 1.7% of total short open interest and 9.4% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 2,869 long positions and covering 4,984 short positions, leaving them in charge of 26.5% of total long open interest and 69.0% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.790 million contracts, down from 1.799 million a week earlier.
CATTLE, BEEF RECAP
Fed cattle trading last week was at $113 to $114 per cwt on a live basis, steady with the previous week. Dressed-basis trading was at $180, also steady.
The USDA choice cutout Friday was down $0.80 per cwt at $225.87, while select was up $0.20 at $220.27. The choice/select spread narrowed to $5.60 from $6.60 with 86 loads of fabricated product and 49 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 $1.15 to $1.20 a bushel over the May CBOT futures contract, which settled at $5.39 a bushel, up ½ cent.
The CME Feeder Cattle Index for the seven days ended Thursday was $134.13 per cwt, up $0.28. This compares with Friday’s Mar contract settlement of $136.35 per cwt, up $1.10.