Managed money, or large investment funds, extended their net long live cattle position for the 11th straight week during the week ended Tuesday as commercial traders extended their net short position for the 11th week.
The Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday said managed money had a net long live cattle position of 104,755 contracts, up 3,360, or 3.31%, from 101,395 the previous week. The new total also was up 139,517 contracts, or 401.4%, from the Tuesday, Nov. 8, low of 34,762 from which the 11-week rush to long began.
Commercial traders, those who own the cattle at some point in their lives, held a new net short position of 153,394 contracts, up 4,029, or 2.70%, from 149,365 the previous week. The new total also was up 87,532, or 132.9%, from 65,862 the week ended Tuesday, Nov. 8.
The CFTC said managed money arrived at its new net long position by adding 7,726 long positions and 4,366 short positions while unwinding 56 spreads. This left them representing 34.3% of total long open interest and only 4.3% of total short open interest.
Commercials got to their new net short position by adding 1,264 long positions and 5,293 short positions, leaving them in control of 8.6% of total long open interest and 52.5% of total short open interest.
The CME Group said total live cattle open interest during the CFTC week rose 12,915 contracts, or 3.84%, to 349,402 contracts from 336,487.
Swap dealers, or those who facilitate some trades, tend to have a very even net long position around 54,000 contracts. They now hold a net long position of 83,483. Along with this new position, they controlled 25.1% of total long open interest and 1.2% of total short open interest.
During the week, the most-active Apr contract rose to an 11-month high of $120.32 per cwt before declining again.
MANAGED MONEY GOES LONG CORN
Managed money went long corn during the CFTC week, moving to a net long position of 17,760 contracts, a gain of 71,528 from being net short by 53,768 the previous week. The last time they were net long was the week ended July 5 with a long position of 86,050 contracts, and it was their fourth week of net buying.
At the same time, commercial traders extended their net short position for a fifth straight week to 319,065 contracts from 286,908, a gain of 32,157, or 11.2%.
Managed money arrived at its new net long position by adding 47,682 long futures positions and covering 23,846 shorts while adding 20,056 spread positions. This left them representing 18.5% of total long open interest and 17.2% of total short open interest.
Commercials got to their new net short position by liquidating 7,851 long positions and adding 24,306 short positions, leaving them in control of 21.9% of total long open interest and 45.5% of total short open interest.
CASH CATTLE TRADE STEADY-HIGHER
Average fed cattle exchange auction prices Wednesday were $1.45 per cwt higher at $121.97, versus $120.52 a week earlier.
Cash cattle then traded at $121.50 to $124, mostly $122, on a live basis, up $0.50 to $1.
Dressed-basis trades were reported at a steady $193 to $194 per cwt.
The USDA’s choice cutout Friday was down $0.30 per cwt at $192.70, while select was off $0.80 at $188.94. The choice/select spread widened to $3.76 from $3.26 with 53 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $131.71 per cwt, down $0.91. This compares with Friday’s Mar settlement of $127.45, up $0.35.