Managed money, a proxy for large commodity investment funds, reversed course and took on a larger net long live cattle futures position in the week ended Tuesday as hedgers acquired a larger net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders Report Friday.
FUNDS GET LONGER CATTLE
As of Tuesday, managed money’s new net long live cattle position totaled 31,859 contracts, up 10,072, or 46.2%, from 21,787 a week earlier. It was the first week of increased net long position in seven weeks.
At the same time, hedgers, known in the industry as commercial traders, had a total net short position Tuesday of 120,416 contracts, up 6,096, or 5.33%, from 114,320 a week earlier. It also was their first reversal of position trend in seven weeks.
The CFTC said managed money arrived at their new net long cattle position by adding 3,949 long positions, covering 6,123 short positions and unwinding 2,798 spread positions. This left them with 24.4% of total long open interest, 13.2% of total short positions and 9.4% of total spread positions.
Commercials got to where they were Tuesday by liquidating 4,510 long positions and adding 1,586 short positions, leaving them in charge of 12.2% of total long open interest and 54.9% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 282,249 contracts, down 2,471, or 0.87%, from 284,720 a week earlier.
CME Group data also showed that the most-active Dec live cattle futures contract rose in value during the week ended Tuesday, settling at $129.25 per cwt, compared with $127.85 a week earlier.
FUNDS TAKE SHORTER CORN POSITION
Meanwhile, managed money took on a bit shorter Chicago corn position in the week ended Tuesday, clocking in with 218,239 contracts, up 25,358, or 10.4%, from 243,597 a week earlier.
Commercials’ net short corn position Tuesday totaled 465,483 contracts, down 10,186m or 2.14%, from 475,669 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 8,627 long positions, adding 16,731 short positions and putting on 1,187 spread positions. This left them holding 19.5% of total long open interest, 3.9% of total short open interest and 8.2% of total spread open interest.
Commercials got to where they were Tuesday by adding 14,955 long positions and 4,769 short positions, leaving them with 28.5% of total long open interest and 61.7% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $123.12 to $125.00 per cwt, compared with the previous week’s range of $123.39 to $125.00. FOB dressed steers and heifers went for $193.39 to $196.04 per cwt, versus $193.61 to $196.03.
The USDA choice cutout Friday was down $0.08 per cwt at $280.24, while select was off $0.06 at $260.62. The choice/select spread narrowed to $19.62 from $19.64 with 119 loads of fabricated product and 20 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 unchanged at $1.10 to $1.20 a bushel over the Dec futures and for southwest Kansas were unchanged at $0.40 over Dec, which settled at $5.25 3/4 a bushel, up $0.09.
Twenty heifer and 11 steer contracts were tendered for delivery Friday against the Oct live cattle contract. Twenty more heifer and five steer contracts were retendered at one, and five steer contracts were demanded at one.
The CME Feeder Cattle Index for the seven days ended Thursday was $153.35 per cwt down $0.66. This compares with Friday’s Oct contract settlement of $157.57 per cwt, down $0.85.