Large commodity investment firms, called managed money, covered short live cattle futures positions aggressively in the week ended Tuesday, Nov. 3, while hedgers extended their collective net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Monday. The report was delayed from Friday by the observance of the Veterans Day holiday on Wednesday.
FUNDS GO LONG
Managed money’s new collective net long live cattle futures position as of last Tuesday was 25,720 contracts, up 11,420, or 79.9%, from 14,300 a week earlier. It was the second straight week of taking on a larger net long position for these traders.
Cattle owners, called commercial traders, reversed course during the latest CFTC reporting week and extended their collective net short position to 98,732 contracts, up 6,595, or 7.16%, from 92,137 a week earlier.
The CFTC said managed money arrived at their new net long cattle position by adding 33 long positions and covering 11,387 short positions, while putting on 4,312 new spread positions. This left their collective position representing 20.8% of total long open interest, 11.4% of total short open interest and 12.4% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 3,765 long positions and adding 2,830 short positions, leaving them in charge of 14.8% of total long open interest and 51.0% of total short open interest.
The CME Group said total live cattle open interest as of last Tuesday was 272,937 contracts, down 1,829, or 0.67%, from 274,766 a week earlier.
CME Group data showed that the most-active Feb live cattle futures contract rose during the week to settle at $115.10 per cwt, up $4.80, or 4.35%, from $110.30 a week earlier. The contract since has dropped back to settle at $112.02 per cwt Monday.
FUNDS TRIM LONG CORN POSITION
Meanwhile, managed money trimmed its net long Chicago corn position for the first time in 13 weeks during the week ended last Tuesday. Their new net long position totaled 268,825 contracts, down 1,571, or 0.58%, from 270,396 a week earlier.
Commercials extended their net short position to 611,945 contracts, up 34,247, or 5.93%, from 577,698 a week earlier. It was their largest net short position in more than a year.
The CFTC said managed money arrived at their new net long corn position by adding 11,632 long positions, 13,203 short positions and unwinding 21,974 spread positions. This left them holding 18.9% of total long open interest, 3.6% of total short open interest and 8.9% of total spread open interest.
Commercials got to where they were by adding 28,450 long positions and 62,697 short positions, leaving them with 28.6% of total long open interest and 63.3% of total short open interest.
CATTLE, BEEF RECAP
Fed cattle trading last week was at $110 per cwt on a live basis in the Plains, up $2.75 to $4 from the previous week. Dressed-basis trading was done at $172, up $5 to $12.
The USDA choice cutout Monday was up $0.97 per cwt at $226.95, while select was up $2.89 at $212.35. The choice/select spread narrowed to $14.60 from $16.52 with 82 loads of fabricated product and 46 loads of trimmings and grinds sold into the spot market.
The USDA reported Monday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.10 to $1.15 per bushel over the Dec CBOT futures contract, which settled at $4.16 1/4 a bushel, up $0.05 3/4.
The CME Feeder Cattle Index for the seven days ended Monday was not available. Friday’s index was $137.35 per cwt, up $0.65. This compares with Tuesday’s Nov contract settlement of $137.27 per cwt, down $0.20.