Large commodity investment funds, called managed money, extended their collective net long live cattle futures position during the week ended Tuesday to its largest position in four months, according to Commodity Futures Trading Commission data.
The data was released Friday in the CFTC’s weekly Commitments of Traders report. It showed managed money’s new net long position was 45,103 contracts, up 11,147, or 32.8%, from 33,956 the previous Tuesday and the longest since March 27 when it was 48,890 contracts. It was the 10th straight week of increases in managed money’s net long cattle position.
At the same time, commercial traders, those who own the cattle and theoretically could make or take delivery of a futures contract, extended their collective net short live cattle futures position to its largest point in 3 ½ months.
Commercials’ new net short position on Tuesday was 123,437 contracts, up 5,954, or 5.07%, from 117,483 the previous week. It was their largest net short position since April 12 when it was 128,001 contracts.
The CFTC data showed managed money arrived at its new net long cattle position by adding 2,649 long positions, covering 8,498 short positions and unwinding 7,547 spread positions. This left them representing 24.8% of total long open interest, 10.5% of total short open interest and 11.1% of total spread open interest.
Commercial traders got to where they were by liquidating 609 long positions and adding 5,345 short positions, leaving them in control of 12.2% of total long open interest and 51.6% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday was 314,177 contracts, down 6,407, or 2.00%, from 320,584 the previous week.
CME Group data also showed that the most-active Oct futures contract gained during the week, but that all of the gain came last Wednesday. Subsequent trading was relatively flat. The contract settled Tuesday at $110.32 per cwt, up $1.82, or 1.68%, from $108.50 a week earlier.
FUNDS MARGINALLY LESS SHORT CORN
After 11 weeks of declining interest in owning CME Group corn futures, managed money got a little less short during the week ended Tuesday. Managed money’s new net short position as of Tuesday was 164,923 contracts, down 1,042, or 0.63%, from 165,965 the previous week.
Commercials’ new net short position Tuesday was 216,086 contracts, down from 238,456 the previous week, a decline of 22,370, or 9.38%.
The CFTC said managed money arrived at its new net short corn position by adding 12,727 long positions, 11,685 short positions and 7,971 spread positions. This left them representing 14.0% of total long open interest, 22.6% of total short open interest and 9.5% of total spread open interest.
Commercials got to where they were by adding 18,090 long positions and covering 4,280 short positions, leaving them with 27.5% of total long open interest and 38.8% of total short open interest.
CATTLE, BEEF RECAP
No cattle sold Wednesday on the Livestock Exchange Video Auction. One pen sold the previous Wednesday at $112 per cwt.
Cash cattle traded last week at $112 per cwt on a live basis, steady to down $1 from the previous week. A small number of cattle traded on a dressed basis at $176 to $178 per cwt, down $2.
The USDA choice cutout Wednesday was up $0.23 per cwt at $205.14, while select was unchanged at $198.27. The choice/select spread widened to $6.87 from $6.64 with 69 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $149.57 per cwt, up $0.36. This compares with Friday’s Aug settlement of $152.30, up $0.87.