Large commodity investment firms, known as managed money, nudged their collective net long live cattle futures position higher for the third straight time in the week ended Tuesday, according to data from the Commodity Futures Trading Commission.
The data came from the CFTC’s weekly Commitments of Traders report Friday.
The report showed that managed money’s new net long live cattle futures position Tuesday stood at 26,395 contracts, up 1,484, or 5.96%, from 24,911 the previous Tuesday. By comparison, the most recent low point in their cattle position was 20,911 contracts a month earlier.
At the same time, commercial traders, those who own cattle and primarily use futures for hedging, had a collective net short position Tuesday of 121,872 contracts, down 1,659, or 1.34%, from 123,531 a week earlier.
The CFTC said managed money arrived at its new net long cattle position by liquidating 940 long positions, covering 2,424 short positions and unwinding 1,793 spread positions. This left them representing 19.2% of total long open interest, 11.1% of total short open interest and 18.1% of total spread open interest.
Commercial traders reached their new net short cattle position by adding 1,063 long positions and covering 596 short positions, leaving them in control of 11.8% of total long open interest and 49.5% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday was 323,526 contracts, down 5,094, or 1.55%, from 328,620 the week before.
CME Group data also showed that the most-active Oct contract had a net gain through the week ended Tuesday, settling at $109.87 per cwt, compared with $109.25 a week earlier. In between, it set a swing low of $107.85 on Friday along with a nearly identical low of $107.87 on Thursday.
FUNDS LIQUIDATE LONG CORN POSITIONS
Meanwhile, managed money liquidated some of its long corn positions in the week ended Tuesday, ending with 143,540 contracts, down 35,192, or 19.7%, from 178,732.
Commercials covered short positions, ending Tuesday with 517,086 contracts, down 21,146, or 3.93%, from 538,232 the week before.
The CFTC said managed money got to its new long corn position by liquidating 14,917 long positions, adding 20,275 short positions and putting on 1,157 new spread positions. This left them representing 14.6% of total long open interest, 6.6% of total short open interest and 13.9% of total spread open interest.
Commercials reached their new short corn position by liquidating 9,804 long positions and covering 30,950 short positions, leaving them in control of 25.8% of total long open interest and 54.8% of total short open interest.
The CME Group said total corn open interest as of Tuesday stood at 1.784 million contracts, down from 1.800 million a week earlier.
The CME also said the most-active Dec contract declined during the CFTC week to close at $4.31 ½ a bushel from $4.41 ¼.
CATTLE, BEEF RECAP
Cash cattle traded in the Plains last week at $112 per cwt on a live basis, up $1 to down $2.50 from the previous week with trades up to $115 to $116 in Iowa. Dressed-basis trading appeared at $183 with some up to $185 in Iowa, steady to up $1.
The USDA choice cutout Friday was down $0.40 per cwt at $212.17, while select was off $0.84 at $188.34. The choice/select spread widened to $23.83 from $23.39 with 63 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday was $139.58 per cwt, up $2.16 from the previous day. This compares with Friday’s Aug contract settlement of $143.72, up $0.92.