10-5-20 – Large commodity index funds, known as managed money, took on a larger cumulative net long live cattle futures position in the week ended Tuesday, taking them to their largest position in five weeks.
The information came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
Managed money’s new net long live cattle futures position totaled 59,763 contracts, up 3,803, or 6.80%, from 55,960 a week earlier. It was their largest net long position since Aug. 25 when it was 60,546 contracts.
At the same time, traders who own the cattle and approach the market primarily as hedgers, known as commercial traders, extended their collective net short live cattle futures position to 135,130 contracts, up 1,381, or 1.02%, from 133,759 a week earlier. It was their largest net short position since Sep. 15 when it was 134,789 contracts.
The CFTC reported that managed money arrived at their new net long live cattle position by adding 3,485 long positions, covering 318 short positions and unwinding 427 spread positions. This left them in control of 26.4% of total long open interest, 6.7% of total short open interest and 14.0% of total spread open interest.
Commercials got to where they were Tuesday by adding 2,569 long positions and 3,940 short positions, leaving them holding 7.7% of total long open interest and 52.3% of total short open interest.
The CME Group reported total live cattle open interest Tuesday at 303,541 contracts, up 9,148, or 3.11%, from 294,393 a week earlier.
The CME Group also reported that its most-active Dec live cattle contract rose in value during the CFTC reporting week to settle Tuesday at $113.12 per cwt, up from $109.80 a week earlier.
FUNDS BUY MORE CORN
Meanwhile, managed money extended their collective net long position in Chicago corn futures to 84,748 contracts, up 2,933, or 3.58%, from 81,815 a week earlier. It was their seventh straight week of buying corn futures, and it took them to their largest net long position in more than a year.
Commercials also sold corn futures for the seventh straight week, extending their collective net short corn position to 311,672 contracts, up 17,771, or 6.05%, from 293,901 a week earlier and their largest short position in more than a year.
The CFTC said managed money arrived at their new corn position by liquidating 2,595 long positions, covering 5,528 short positions and unwinding 824 long positions. This left them in control of 14.1% of total long open interest, 8.5% of total short open interest and 12.4% of total spread open interest.
Commercials got to where they were by adding 10,591 long positions and 28,362 short positions, leaving them with 29.9% of total long open interest and 50.5% of total short open interest.
The CME Group reported total corn open interest Tuesday at 1.514 million contracts, up 11.836, or 0.79%, from 1.502 million a week earlier.
CATTLE, BEEF RECAP
Fed cattle trading last week was seen at $107 per cwt on a live basis, up $2 to $3 from the previous week. Dressed-basis trading was reported at $167 to $168 per cwt, up $3 to $4.
The USDA choice cutout Friday was down $0.10 per cwt at $218.88, while select was off $0.01 at $207.61. The choice/select spread narrowed to $11.27 from $11.36 with 79 loads of fabricated product and 41 loads of trimmings and grinds sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $142.96 per cwt, up $0.58. This compares with Friday’s Oct contract settlement of $139.90 per cwt, down $1.02.