Large commodity investment firms, called managed money, continued to invest in live cattle futures during the week ended last Tuesday while producers trimmed their net short position.
The Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday showed that as of Tuesday, managed money had increased their collective net long live cattle futures position to 94,861 contracts from 94,054 the previous week. This was a gain of 807 contracts, or 0.86%, and advanced their net long position to its highest point since the week ended Dec. 12 when it was 98,540 contracts.
At the same time, commercial traders, or those who own the cattle at some point in their lives and are mostly hedgers, pared their net short position to 189,749 contracts, down 2,350, or 1.22%, from 192,099 the previous Tuesday.
The CFTC said managed money arrived at its new cattle position by liquidating 270 long positions, covering 1,077 short positions and adding 1,815 spread positions. This left them representing 29.1% of total long open interest, 3.3% of total short open interest and 10.2% of total spread open interest.
Commercial traders got to their new cattle position by liquidating 2,667 long positions and covering 5,017 short positions, leaving them in control of 8.0% of total long open interest and 59.6% of total short open interest.
The CME Group reported that total live cattle open interest declined during the week ended last Tuesday to 367,275 contracts from 369,776, a decline of 2,501, or 0.68%.
The CME Group also reported that the most-active Apr live cattle futures contract rose slightly to close at $124.77 per cwt last Tuesday from $124.57 the previous Tuesday. However, in between, it set a swing low of $122.80 on Friday.
FUNDS ALMOST EVEN ON CORN
In a seasonal move, managed money continued to invest in corn futures as well. The CFTC reported that managed money’s net short corn position as of Tuesday was 5,216 contracts, down 79,656, or 93.9%, from 84,872 the week before.
At the same time, commercial traders expanded their net short position to 343,075 contracts from 275,941, a gain of 67,134, or 24.3%.
The CFTC reported that managed money arrived at its new corn position by adding 15,682 long positions, covering 63,974 short positions and adding 4,242 spread positions. This left them representing 15.6% of total long open interest, 15.9% of total short open interest and 8.9% of total spread open interest.
Commercials got to their new corn position by liquidating 29,578 long positions and adding 37,556 short positions, leaving them holding 24.7% of total long open interest and 45.4% of total short open interest.
The CME Group said total open interest fell 47,548 contracts, or 2.78%, during the week to 1,662 million contracts from 1.710 million.
Most-active Mar rose to $3.66 ¾ a bushel from $3.63 ½.
CATTLE, BEEF RECAP
No fed cattle sold Wednesday on the Livestock Exchange Video Auction. Only 126 head sold last Wednesday at $126 per cwt.
Cash cattle traded last week from $126 to $130 per cwt on a live basis, but most activity was at $129 to $130, up about $3 to $4 from last week. Dressed-basis sales ranged from $202 to mostly $205, up $2 to $5.
The USDA’s choice cutout Monday was up $2.69 per cwt at $212.57, while select was up $2.31 at $207.43. The choice/select spread widened to $5.14 from $4.76 with 87 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $148.15 per cwt, up $0.45. This compares with Friday’s Mar settlement of $149.72, down $0.10.