Large commodity investment funds, known as managed money, continued to reinvest in live cattle futures during the week ended Tuesday, advancing their net long position to 86,088 contracts from 80,039 the previous week. This is a gain of 6,049 contracts, or 7.56%.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report, which was released Friday.
The COT report went on to say that commercial traders, those who own the cattle and primarily are hedgers, advanced their collective net short live cattle position to 185,268 contracts from 180,271, a gain of 4,997, or 2.77%.
The CFTC said managed money arrived at its new cattle position by adding 4,581 long positions while covering 1,468 short positions and unwinding 2,166 spread positions. This left them representing 27.8% of total long open interest, 4.2% of total short open interest and 9.8% of total spread open interest.
Commercial traders got to their new cattle position by adding 790 long positions and 5,787 short positions, leaving them in control of 8.4% of total long open interest and 59.2% of total short open interest.
The CME Group said total live cattle open interest rose during the CFTC reporting week to 364,485 contracts, up 7,409, or 2.07%, from 357,076 the previous Tuesday.
During the week, the most-active Apr futures contract rose to a two-month high of $126.30 per cwt on Thursday from the previous Tuesday’s close of $124.80 before plunging to a low of $122.02 on Friday and closing at $124.17 on Tuesday.
FUNDS COVER CORN SHORTS
Meanwhile, managed money began to think of corn in a more bullish light as they cut their net short position to 129,054 contracts, its lowest point since Sep. 26 when it was 121,671 contracts. In the latest weekly move, managed money’s net short position declined from 217,057 contracts, a decline of 88,003, or 40.5%.
At the same time, commercial traders, advanced their net short corn position to 251,980 contracts from 163,068 the previous week. This is a gain of 88,912 contracts, or 54.5%.
The CFTC said managed money arrived at its new corn position by adding 28,768 long positions, covering 59,235 short positions and placing 1,623 spread positions. This left them representing 14.0% of total long open interest, 21.6% of total short open interest and 9.4% of total spread open interest.
Commercials got to their new positions by liquidating 26,347 long positions and adding 62,565 short positions, leaving them holding 25.4% of total long open interest and 40.3% of total short open interest.
The CME Group said total corn open interest as of Tuesday stood at 1.696 million contracts, up 23,896, or 1.43%, from 1.672 million the previous week.
During the week, the most-active Mar contract rose to $3.61 ½ a bushel from $3.51 ¼ a bushel, a gain of $0.10 ¼, or 2.92%.
CATTLE, BEEF RECAP
Cash cattle sold last week in the Plains at $126 per cwt on a live basis, steady to down $1 from the bulk of the previous week’s transactions. On a dressed basis, cattle sold steady at $200.
No cattle were sold Wednesday on the Livestock Exchange video auction.
The USDA’s choice cutout Friday was down $0.50 per cwt at $209.10, while select was off $1.09 at $203.45. The choice/select spread widened to $5.65 from $5.06 with only 67 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $148.03 per cwt, up $0.50. This compares with Friday’s Mar settlement of $150.92, up $1.37.