Funds Invest In Live Cattle, Corn Futures

Managed money, a proxy for large commodity investment firms, again boosted their combined net long position in live cattle futures during the week ended Tuesday, as hedgers raised their net short position.

The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.

 

FUNDS GET LONGER CATTLE

 

Managed money’s new net long position in live cattle futures totaled 78,689 contracts, up 1,864, or 2.43%, from 76,825 a week earlier.  It was their second straight week of increases.

At the same time, those hedgers, known as commercial traders, increased their collective net short cattle position to 160,135 contracts, up 2,728, or 1.73%, from 157,407 a week earlier.

The CFTC said managed money arrived at their new net long position by liquidating 852 long positions, covering 2,716 short positions and putting on 4,213 spread positions.  This left their net position representing 28.1% of total long open interest, 4.9% of total short open interest and 12.6% of total spread open interest.

Commercial traders got to where they were Tuesday by adding 960 long positions and 3,688 short positions, leaving them with 9.9% of total long open interest and 57.0% of total short open interest.

The CME Group said total live cattle open interest Tuesday was 339,540 contracts, up 4,774, or 1.43%, from 334,766 a week earlier.

CME Group data also showed that the most-active Jun contract rose in value during the CFTC reporting week, settling Tuesday at $121.45 per cwt, up from $119.65 a week earlier.

 

FUNDS GET LONGER CORN

 

Also for the second straight week, managed money took on a larger net long position in Chicago corn futures, taking their position up to 360,786 contracts, up from 338,982 a week earlier.  It was their largest net long corn position in more than a year.

At the same time, commercials nudged their net short position higher to 761,494 contracts from 761,270 a week earlier for a gain of 224, or 0.03%.

The CFTC said managed money arrived at their new corn position by adding 16,748 long positions, covering 5,056 short positions and putting on 613 spread positions.  This left them with 21.5% of total long open interest, 1.4% of total short open interest and 9.5% of total spread open interest.

Commercials go to where they were by liquidating 26.1% of total long open interest and 68.7% of total spread open interest.

The CME Group said total corn open interest Tuesday was 1.791 million contracts, up 1,326, or 0.07%, from 1.790 million a week earlier.

CME data also showed that the most-active May contract rose in value during the CFTC week to settle at $5.54 ¼ a bushel, compared with $5.45 ¾.

 

CATTLE, BEEF RECAP

 

Fed cattle trading last week was at $114 to $115 per cwt on a live basis, up $1 from the previous week.  Dressed-basis trading was steady to up $2 at $180 to $182.

The USDA choice cutout Friday was up $1.38 per cwt at $229.99, while select was up $1.84 at $219.95.  The choice/select spread narrowed to $10.04 from $10.50 with 79 loads of fabricated product and 29 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 up $0.07 to $0.10 at $1.25 to $1.27 a bushel over the May CBOT futures contract, which settled at $5.57 3/4 a bushel, up $0.11 1/4.

The CME Feeder Cattle Index for the seven days ended Thursday was $134.03 per cwt, down $0.25.  This compares with Friday’s Mar contract settlement of $134.67 per cwt, down $0.85.