Large commodity investment funds, called managed money for short, continued to increase their collective net long position in live cattle futures during the week ended Tuesday, according to the weekly Commitments of Traders report from the Commodity Futures Trading Commission.
Friday’s COT report showed that managed money’s new net long position stood at 60,498 contracts, up 22,225, or 58.1%, from 38,273 the week before. It was the seventh straight week since their net short position of 10,478 contracts on Sep. 17 and their largest net long position since May 28 when it was 64,319 contracts.
Also during the latest CFTC reporting week, cattle owners, who mostly use futures as a hedging tool and are known as commercial traders, increased their collective net short live cattle position to 130,652 contracts, up 16,536, or 14.5%, from 114,116 the week before. It was their sixth straight week of increases to their net short position and their largest since June 25 when it was 131,406 contracts.
The CFTC said managed money got to its new net long cattle position by adding 15,018 long positions, covering 7,207 short positions and putting on 5,163 spread positions. This left their position representing 26.2% of total long open interest, 8.9% of total short open interest and 15.3% of total spread open interest.
Commercials got to their new short cattle position by adding 1,300 long positions and 17,836 short positions, leaving them in control of 11.7% of total long open interest and 49.1% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday came to 349,503 contracts, up from 319,180 the previous Tuesday, a gain of 30,323, or 9.50%.
CME Group data also showed that the most-active Dec live cattle contract rose during the CFTC reporting week to settle Tuesday at $119.45 per cwt, compared with $116.82 a week before.
FUNDS STILL SHORTING CORN
Meanwhile, managed money continued to expand its net short position in Chicago corn futures, the CFTC said. The COT report showed that managed money’s new position in corn futures was 109,720 contracts, up 21,602, or 24.5%, from 88,118 the week before. It was their largest net short corn position since Oct. 1 when it was 128,031 contracts.
Commercial traders also increased their net short corn position to 203,464 contracts, up from 202,240 the week before, a gain of 1,224, or 0.61%.
The CFTC said managed money arrived at its new short corn position by liquidating 1,548 long positions, adding 20,054 short positions and unwinding 4,426 spread positions. This left them in charge of 8.5% of total long open interest, 15.3% of total short open interest and 13.6% of total spread open interest.
Commercials got to their new short corn position by adding 7,370 long positions and 8,594 short positions, leaving them with 31.7% of total long open interest and 44.4% of total short open interest.
The Dec contract settled Tuesday at $3.81 ¾ a bushel, versus $3.86 ¼.
CATTLE, BEEF RECAP
Cash cattle trading last week took place late at $114 to $116 per cwt on a live basis, up $2, while dressed-basis trading ranged from $181 to $182 per cwt, up $1 to $2.
The USDA choice cutout Friday was up $0.83 per cwt at $239.12, while select was up $0.24 at $213.26. The choice/select spread widened to $25.86 from $25.27 with 98 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday was $145.84 per cwt, down $0.25 from the previous day. This compares with Friday’s Nov contract settlement of $147.00, up $0.22.