Large commodity investment funds, collectively called managed money, raised their net long position in live cattle futures during the week ended Tuesday as cattle owners extended their net short position.
The data was released by the Commodity Futures Trading Commission Friday in its weekly Commitments of Traders report.
The report said managed money’s new net long live cattle position stood at 62,004 contracts on Tuesday, up 7,669, or 14.1%, from 54,335 a week earlier and the second straight week of long-position advances.
The CFTC also reported that commercial traders, the owners of cattle who primarily are hedgers, took their collective net short position to 146,763 contracts, up 4,744, or 3.13%, from 151,507 the previous Tuesday. This also was their second straight week of advancing their net short position.
CFTC data showed that managed money arrived at its new net long cattle position by adding 4,581 long positions, covering 3,088 short positions and unwinding 1,263 spread positions. This left them representing 25.5% of total long open interest, 7.5% of total short open interest and 15.0% of total spread open interest.
Commercials got to where they were Tuesday by adding 269 long positions and 5,525 short positions, leaving them in control of 10.9% of total long open interest and 53.5% of total short open interest.
CME Group data showed total live cattle futures open interest during the latest CFTC reporting week fell 4,287, or 1.26%, to 344,664 contracts from 340,377.
The CME also reported that the most-active Feb live cattle contract rose during the CFTC week to settle Tuesday at $120.60 per cwt from $119.72 the previous Tuesday, a gain of $0.88, or 0.74%. In between, it set a swing high of $121.47 per cwt on Wednesday.
FUNDS GET SHORTER CORN
Meanwhile, managed money continued to sell corn futures, extending their net short position, which they attained in the previous week. The new net short position is 31,054 contracts, up 21,202, or 215.2%, from 9,852 the previous Tuesday, and it was their shortest position since Oct. 9 when it was short by 39,399 contracts.
Commercials continued to cover their collective net short position, ending Tuesday being short by 217,734 contracts, down 47,323, or 17.9%, from 265,057 a week earlier. It was their smallest net short position since Sep. 25 when it was short by 197,247 contracts.
The CFTC said managed money arrived at its new corn position by liquidating 4,997 long positions, adding 16,205 short positions and putting on 1,565 new spread positions. This left them holding 13.1% of total long open interest, 14.9% of total short open interest and 13.6% of total spread open interest.
Commercials got to where they were by adding 16,647 long positions and covering 30,676 short positions, leaving them with 32.3% of total long open interest and 45.5% of total short open interest.
CATTLE, BEEF RECAP
At the Fed Cattle Exchange video auction Wednesday, 148 head of fed cattle sold at $116.75 per cwt.
Cash cattle traded last week late at mostly $118 up to $118.50 per cwt on a live basis, up $1 to $2 from the bulk of the previous week’s action. On a dressed basis, cattle traded at mostly $183 up to $183.50 per cwt, up $3 to $3.50.
The USDA choice cutout Friday was unchanged at $212.61 per cwt, while select was down $0.12 at $198.41. The choice/select spread widened to $14.20 from $14.08 with 71 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $147.13 per cwt, down $0.34. This compares with Friday’s Jan settlement of $145.22, down $0.75.