Large commodity investment funds, known as managed money, extended their collective net long live cattle futures position to its largest since the week ended June 20, according to data from the Commodity Futures Trading Commission.
The CFTC data was made public Friday in its weekly Commitments of Traders report, which said managed money’s new net long position of 120,885 contracts was the highest since that June 20 total of 127,086. The new position also was the eighth straight week of increases and was up 12,268, or 11.3%, from 108,617 the previous week.
During the same week, commercial traders, those who own the cattle at some point and thus are able, in theory, to make or take delivery of a futures contract, increased their net short position to 198,013 contracts. This was up 8,873, or 4.69%, from 189,140 the previous week and the largest since the week ended July 11’s 198,095.
The CFTC said managed money arrived at its new net long cattle position by adding 13,288 long positions, 1,020 short positions and 5,159 spread positions. This left them representing 36.8% of total long open interest, 2.7% of total short open interest and 7.7% of total spread open interest.
Commercial traders reached their new net short position by adding 418 long positions and 9,291 short positions, leaving them in control of 7.1% of total long open interest and 62.9% of total short open interest.
The CME Group said total live cattle open interest rose during the CFTC week to 354,616 contracts, up 18,500, or 5.50%, from 336,116 the previous week.
CME Group data also show that the most-active Dec delivery month rose during the week ended Tuesday to close at $125.62 per cwt from $119.52, a gain of $6.10, or 5.10%. Since then, the contract has gone on to new contract highs, topping at $127.87 on Thursday.
FUNDS SHORTER CORN THAN COMMERCIALS
Meanwhile, managed money continued to extend its net short corn position and became shorter than commercials during the latest CFTC week. Data show managed money to be short by 199,135 contracts, while commercials are short by 132,250 contracts. Data show the two have not been reversed in position since the week ended June 6.
Managed money’s new net short corn position was up 43,828 contracts, or 28.2%, from 155,307 contracts the previous week.
Commercials’ new net short corn position of 132,250 contracts, was down 28,488, or 17.7%, from 160,738 the previous week.
The CFTC said managed money arrived at its new corn position by liquidating 19,784 long positions, adding 24,044 short positions and unwinding 1,723 spread positions. This left them representing 12.2% of total long open interest, 24.7% of total short open interest and 7.5% of total spread open interest.
Commercials added 36,637 long positions and 8,149 short positions to their net short position leaving them with 27.3%^ of total long open interest and 35.6% of total short open interest.
CATTLE, BEEF RECAP
One pen of Texas fed cattle sold on the Livestock Exchange video auction at $120 per cwt Wednesday.
Trade was reported in eastern Nebraska’s dressed markets at $192 per cwt. Live-basis bids went from $120 to $125 per cwt, and trade came at $120 to mostly $124 to $125, generally up $8 to $9.
The USDA’s choice cutout Friday was up $0.49 per cwt at $208.74, while select was down 0.08 at $193.08. The choice/select spread widened to $15.66 from $15.09 with 89 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday was $159.23 per cwt, up $0.52. This compares with Friday’s Nov settlement of $160.87, up $2.95.