Managed money, a proxy for large commodity investment firms, upped their collective net long position in live cattle futures during the week ended last Tuesday as hedgers increased their total net short position.
The data came from the weekly Commitments of Traders report from the Commodity Futures Trading Commission. The report was delayed from its usual Friday release by the observance of the Veterans Day holiday Thursday.
FUNDS ADVANCE LONG POSITIONS
Managed money had a collective net long position last Tuesday of 43,698 contracts, up 9,668, or 28.4%, from 34,030 a week earlier. It was their largest net long position since Sep. 7 when it was 65,040 contracts.
Commercial traders, those who own, or will own, the cattle and participate in the futures market primarily for hedging, had a collective net short position last Tuesday of 125,313 contracts, up from 120,923 a week earlier. It was their largest net short position since Sep. 14 when it was 130,449 contracts.
The CFTC said managed money arrived at their new net long cattle position by adding 4,560 long positions, covering 4,108 short positions and unwinding 4,088 spread positions. This left them holding 25.1% of total long open interest, 10.2% of total short open interest and 11.5% of total spread open interest.
Commercial traders reached their new net short position by adding 499 long positions and 4,889 short positions, leaving them with 9.8% of total long open interest and 52.6% of total short open interest.
The CME Group said total live cattle open interest last Tuesday was 292,805 contracts, down 3,794, or 1.28%, from 296,599 a week earlier.
CME Group data also showed that the most-active Feb live cattle contract rose during the CFTC reporting week to settle at $136.70 per cwt, compared with $135.25 a week earlier.
FUNDS ADJUST CORN POSITION DOWNWARD
Meanwhile, managed money reduced their collective net long position in Chicago corn futures to 311,637 contracts last Tuesday, down 7,187, or 2.25%, from 318,824 a week earlier.
Commercial traders increased their collective net short corn position to 573,346 contracts, up 9,229, or 1.64%, from 564,117 a week earlier. It was their largest net short position since June 22 when it was 581,041 contracts.
The CFTC said managed money arrived at their new corn position by liquidating 3,958 long positions, adding 3,229 short positions and unwinding 5,159 spread positions. This left them with 22.2% of total long open interest, 2.0% of total short open interest and 8.3% of total spread open interest.
Commercials got to where they were last Tuesday by adding 13,932 long positions and 23,161 short positions.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $129.52 to $132.00 per cwt, compared with the previous week’s range of $125.93 to $127.88. FOB dressed steers and heifers went for $197.79 to $203.85 per cwt, versus $195.39 to $198.32.
The USDA choice cutout Monday was down $1.10 per cwt at $283.20, while select was off $2.25 at $267.28. The choice/select spread widened to $15.92 from $14.77 with 94 loads of fabricated product and 17 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 $1.30 to $1.40 a bushel over the Dec futures and for southwest Kansas were unchanged at $0.40 over Dec, which settled at $5.76 1/2 a bushel, down $0.00 3/4.
The CME Feeder Cattle Index for the seven days ended Friday was $155.43 per cwt up $0.37. This compares with Monday’s Nov contract settlement of $155.92 per cwt, down $1.07.