Large commodity index funds, known as managed money, more than doubled their collective net long live cattle futures position during the week ended Tuesday as hedgers extended their total net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS GO FOR CATTLE
Tuesday, managed money’s collective net long cattle position was listed at 31,041 contracts, up 17,218, or 124.6%, from 13,823 a week earlier. It was their largest net long position since June 21 when it was 33,072 contracts.
Also on Tuesday, hedgers, known as commercial traders because they own, or will own, the cattle at some point, had a total net short cattle position of 94,601 contracts, up 12,466, or 15.2%, from 82,135 a week earlier. It was their largest net short position since June 21 when it was 105,610 contracts.
The CFTC said managed money arrived at their new cattle position by adding 4,264 long positions, covering 12,954 short positions and putting on 1,860 spread positions. This left them holding 25.7% of total long open interest, 13.4% of total short open interest and 10.9% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 11,608 long positions and adding 858 short positions, leaving them in charge of 12.7% of total long open interest and 50.1% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 252,923 contracts, down 11,729, or 4.43%, from 264,652 a week earlier.
CME data showed that the most-active Oct futures contract rose in value during the CFTC-reporting week to settle Tuesday at $142.37 per cwt, compared with $141.10.
FUNDS RAISE NET LONG CORN POSITION
Managed money, Tuesday, had a net long Chicago corn position of 111,784 contracts, up 8,469, or 8.20%, from 103,315 a week earlier and ending a five-week slide.
Commercials cut their total net short corn position to 390,614 contracts, down from 416,099 a week earlier, a decline of 25,485, or 6.12%.
The CFTC said managed money arrived at their new corn position by liquidating 11 long positions, covering 8,480 short positions and putting on 6,256 spread positions. This left them holding 14.5% of total long open interest, 6.0% of total short open interest and 10.0% of total spread open interest.
Commercials got to where they were by adding 15,279 long positions and covering 10,206 short positions, leaving them holding 27.5% of total long open interest and 57.0% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.327 million contracts, up 18,731, or 1.43%, from 1.308 million a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $136.00 to $150.00 per cwt, compared with the previous week’s range of $137.00 to $145.17. FOB dressed steers, and heifers went for $213.91 to $219.67 per cwt, versus $216.89 to $220.37.
The USDA choice cutout Friday was up $1.47 per cwt at $269.24, while select was up $1.44 at $242.25. The choice/select spread widened to $26.99 from $26.96 with 56 loads of fabricated product and 19 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were steady at $2.60 to $2.80 a bushel over the Sep futures and for southwest Kansas were unchanged at $0.10 over Sep, which settled at $6.16 1/4, up $0.01 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $172.31 per cwt down $0.24. This compares with Friday’s Aug contract settlement of $178.57, up $1.15.