Large commodity investment firms, called managed money, advanced their collective net long live cattle futures position to 94,396 contracts during the week ended Tuesday, Jan. 8, from 92,945 the previous week.
The data came from the Commodity Futures Trading Commission’s Commitments of Traders report, delayed by the partial government shutdown and released on Friday.
The new position for managed money was up 1,451 contracts, or 1.56%, from the previous week. It was their largest net long position since March 6, 2018, when it was 95,747 contracts.
During the same week, commercial traders, those who own the cattle and theoretically could make or take delivery of a futures contract, advanced their collective net short live cattle futures position to 169,634 contracts, up 479, or 0.28%, from 169,155 the previous week. It was their largest net short position since March 13, 2018, when it was 178,986 contracts.
The CFTC said managed money arrived at its new net long position by adding 955 long positions, covering 496 short positions and putting on 2,989 new spread positions. This left them in control of 28.4% of total long open interest, 3.8% of total short open interest and 14.5% of total spread open interest.
Commercials got to where they were by adding 3,328 long positions and 3,807 short positions, leaving them in control of 11.0% of total long open interest and 55.2% of total short open interest.
The CME Group said total live cattle open interest Jan. 8 was 383,782 contracts, up from 376,468 the week before. This was up 7,314 contracts, or 1.92%.
During the week ended Jan. 8, the most-active Apr futures contract made a swing low of $123.17 per cwt on Monday, but settled at $126.15 on Tuesday, compared with $126.25 on Dec. 31.
FUNDS REVERSE, GO LONGER CORN
During the same week, managed money reversed a two-week trend and established a longer net long CBOT corn futures position. The new position was long by 70,160 contracts, up 20,972, or 42.6%, from 49,188 the previous week.
Commercial traders also reversed themselves and enlarged their net short position to 342,501 contracts, up 12,514, or 3.79%, from 329,987 the previous week.
Managed money arrived at its new net long corn position by adding 11,290 long positions, covering 9,682 short positions and putting on 19,528 new spread positions. This left them representing 16.3% of total long open interest, 11.9% of total short open interest and 13.9% of total spread open interest.
Commercials got to their new net short position by liquidating 14,732 long positions and covering 2,218 short positions, leaving them in control of 25.6% of total long open interest and 46.8% of total short open interest.
Total corn open interest rose to 1.623 million contracts from 1.594 the previous week.
CATTLE, BEEF RECAP
One hundred sixty-one head of fed cattle sold on the Fed Cattle Video Exchange Wednesday at $124 to $124.50 per cwt.
Cash cattle traded last week at $124 to $125 per cwt on a live basis, steady to up $1 from the previous week, and at $197 to $200 per cwt on a dressed basis, down $1.
The USDA choice cutout Monday was up $1.53 per cwt at $216.88, while select was up $2.69 at $213.86. The choice/select spread narrowed to $3.02 from $4.18 with 62 loads of fabricated product sold into the spot market.
There were 45 heifer and five steer contracts tendered for delivery Monday.
The CME Feeder Cattle index for the seven days ended Friday, was $141.73 per cwt, up $0.04. This compares with Monday’s Mar contract settlement of $144.67, up $0.57.