Large commodity investment funds, known as managed money, extended their collective net long live cattle position in the week ended Tuesday to its largest in 4 ½ months, according to data from the Commodity Futures Trading Commission.
The CFTC said in its weekly Commitments of Traders report Friday that managed money’s new live cattle position amounted to 21,455 contracts, up 4,696, or 28.0%, from 16,759 the previous Tuesday. It also was their largest net long position since Feb. 18 when it was 30,312 contracts.
During the same week, commercial traders, those who actually own the cattle at some point in their lives and approach futures primarily from a hedging perspective, extended their collective net short cattle position to 104,135 contracts, up 1,806, or 1.76%, from 102,329 a week before.
The CFTC said managed money arrived at their new net long cattle position by adding 1,954 long positions, covering 2,742 short positions and unwinding 978 spread positions. This left their position represent ting 18.2% of total long open interest, 10.3% of total short open interest and 13.0% of total spread open interest.
Commercial traders, meanwhile, got to where they were Tuesday by liquidating 3,310 long positions and covering 1,504 short positions. This left them in control of 12.1% of total long open interest and 50.5% of total short open interest.
The CME Group said on its web site that total live cattle open interest Tuesday was 271,409 contracts, down 3,690, or 1.34%, from 275,099 a week earlier.
CME Group data also showed that the most-active Aug cattle contract rose during the CFTC reporting week to settle Tuesday at $1.00 per cwt, up from $96.27 a week earlier.
FUNDS COVER CORN SHORTS
Meanwhile, managed money cut their collective net short Chicago corn futures position to 150,338 contracts from 211,668 a week earlier, a decline of 61,330, or 29.0%. It was their lowest net short position since April 14 when it was 137,294 contracts.
Commercial traders extended their net short corn position during the CFTC week to 59,196 contracts from 10,488 a week earlier, an increase of 47,708, or 464.4%. It was their largest net short position since April 28 when it was short by 62,825 contracts.
The CFTC said managed money arrived at their new corn position by liquidating 7,389 long positions, covering 68,719 short positions and unwinding 33,907 spread positions. This left they in control of 10.5% of total open interest, 20.6% of total short open interest and 12.2% of total spread open interest.
Commercial traders got to their new position by liquidating 15,056 long positions and adding 33,652 short positions. This left them holding 34.7% of total long open interest and 38.7% of total short open interest.
The CME Group listed total corn open interest Tuesday at 1.496 million contracts, down 68,763, or 4.41%, from 1.560 million a week earlier.
CME Group data also showed that the most-active Dec corn contract rose during the CFTC week to settle Tuesday at $3.52 ½ a bushel from $3.50 ½.
CATTLE, BEEF RECAP
Fed cattle sold last week at $94 to $96 per cwt on a live basis, steady to up $1 from the previous week and at $155 to $160 dressed, up $3 to $5.
The USDA choice cutout Friday was up $0.91 per cwt at $204.50, while select was down $0.54 at $194.29. The choice/select spread widened to $10.21 from $8.76 with 68 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday was $134.92 per cwt, up $1.23. This compares with Friday’s Aug contract settlement of $135.75, up $1.22.