Large commodity investment firms, called managed money, continued to buy live cattle futures during the week ended Tuesday, taking them to their largest cumulative net long position since Feb. 4.
The information came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
That report said managed money’s new net long live cattle position Tuesday stood at 43,824 contracts, up 7,926, or 22.1%, from 35,898 the week before. It was their fourth straight increase in their net long position.
At the same time, commercial traders, those who either own the cattle or use fed cattle and come at the futures market primarily as hedgers, extended their collective net short cattle position to 127,887 contracts, up 9,567, or 8.09%, from 118,320 a week before. It was their largest net short position since Feb. 18 when it was 130,617 contracts short.
The CFTC said managed money arrived at its new net long cattle position by adding 5,588 long positions, covering 2,338 short positions and putting on 278 new spread positions. This left them in charge of 22.9% of total long open interest, 7.7% of total short open interest and 13.8% of total spread open interest.
Commercials got to where they were by liquidating 4,394 long positions and putting on 5,173 new short positions, leaving them with 9.6% of total long open interest and 54.0% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 288,106 contracts up 1,129, or 0.39%, from 286,977 a week earlier.
The CME Group also said the most-active Oct futures contract rose during the CFTC week to close Tuesday at $108.30 per cwt, up from $107.47 a week earlier.
FUNDS, COMMERCIALS SELL CORN
Also in the latest CFTC week, managed money and commercial traders held their respective net short positions nearly steady with last week.
Managed money’s new net short position was 192,787 contracts, down 1,310, or 0.67%, from 194,097 a week earlier.
Commercial traders’ new net short position was 26,407 contracts, down 1,175, or 4.26%, from 27,582 a week earlier.
The CFTC data showed that managed money arrived at their new short corn position by liquidating 611 long positions, adding 1,902 short positions and putting on 2,114 spread positions. This left their position representing 11.0% of total long open interest, 23.1% of total short open interest and 11.7% of total spread open interest.
Commercial traders got to their new position by adding 4,949 long positions and 3,774 short positions, leaving them holding 34.8% of total long open interest and 36.5% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.589 million contracts, down from 1.640 million a week earlier.
CATTLE, BEEF RECAP
Fed cattle trading was reported in the Plains last week at $103 to $106 per cwt on a live basis, up $3 to $4 from the previous week. Dressed-basis trading was done last week at $168 per cwt, up $4 to $5.
The USDA choice cutout Friday was up $3.29 per cwt at $214.24, while select was up $1.88 at $199.29. The choice/select spread widened to $14.95 from $13.54 with 94 loads of fabricated product sold into the spot market.
No delivery intentions were posted Friday against the Aug live cattle futures contract. Twelve heifer contracts and six steer contracts were retendered for delivery at one. Six more heifer and six steer contracts were reclaimed at one.
The CME Feeder Cattle Index for the seven days ended Thursday was at $142.25 per cwt, down $0.85. This compares with Friday’s Aug contract settled of $143.92 per cwt, down $1.02.