Large commodity investment firms, called managed money, added to their collective net long position in the week ended Tuesday but still keeping barely above a net short position, according to the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
Managed money’s net long position Tuesday was only 1,806 contracts, up 1,723, or 2,076.0%, from 83 a week earlier. The percentage gain was huge, but managed money has kept a nearly flat commitments profile in live cattle since early March, and this just extended the pattern.
Commercial traders, those who own the cattle and primarily take part in the futures market as hedgers, also kept a low profile during the week ended Tuesday, increasing their collective net short position to 93,249 contracts, up from 92,797 a week earlier. Commercials have kept a relatively steady net short position for only two weeks.
The CFTC said managed money arrived at their new long cattle position by adding 362 long positions, covering 1,361 short positions and putting on 928 spread positions. This left them in charge of 14.5% of total long open interest, 13.8% of total short open interest and 14.2% of total spread open interest.
Commercials got to their new short cattle position by adding 1,292 long positions and 1,744 short positions, leaving them holding 15.6% of total long open interest and 50.7% of total short open interest.
The CME Group said total cattle open interest as of Tuesday was 265,444 contracts, up 123, or 0.05%, from 265,312 a week earlier.
CME Group data also showed that the most-active Jun contract rose during the week ended Tuesday to close at $84.07 per cwt, up from $83.80. However, the contract made a swing high on Friday at $88.12 per cwt and has tailed off since.
FUNDS KEEP SELLING CORN
Meanwhile, managed money kept pressure on corn markets by continuing to sell during the week ended Tuesday, extending their net short position to 160,025 contracts from 137,294, a gain of 22,731, or 16.6%. It was their largest net short position since Sep. 24 when it was 162,551 contracts.
Commercials kept up their pace of covering short corn positions during the CFTC-reporting week, coming in Tuesday with a net short position of 73,593 contracts, down 34,205, or 31.7%, from 107,798 the week before.
The CFTC said managed money arrived at its new position by adding 4,828 long positions, 27,559 short positions and unwinding 3,632 spread positions. This left them in charge of 8.6% of total long open interest, 19.5% of total short open interest and 12.6% of total spread open interest.
Commercials got to where they were by adding 36,685 long positions and 2,480 short positions, leaving them with 36.7% of total long open interest and 41.7% of total short open interest.
CATTLE, BEEF RECAP
Cash cattle trade last week ranged from $95 to $105 per cwt on a live basis, steady to down $10 from the previous week. Dressed-basis trade took place at $148 to $160 per cwt, down $2 to $8.
The USDA choice cutout Friday was up $9.08 per cwt at $293.37, while select was up $6.13 at $279.02. The choice/select spread widened to $14.35 from $11.40 with 45 loads of fabricated product sold into the spot market.
There were two steer and two heifer delivery notices retendered and demanded at 1 against the Apr futures contract on Friday.
The CME Feeder Cattle index for the seven days ended Thursday was $119.48 per cwt, down $0.93. This compares with Friday’s Apr contract settlement of $119.80, up $0.37 and the May contract settlement or $117.45, up $0.17.