Large commodity investment funds, known as managed money, made a small gain in their collective net long live cattle futures position in the week ended last Tuesday as hedgers trimmed their net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
Managed money’s new net long cattle position Tuesday amounted to 56,757 contracts, up 449, or 0.79%, from 56,308 a week earlier. It was their first gain in their net long position since its latest top two weeks earlier.
Those hedgers, known as commercial traders, the ones who actually own the cattle at some point in their lives, trimmed their collective net short cattle position by 1,172 contracts, or 0.86%, to 135,836 contracts, down from 137,008 a week earlier.
The CFTC said managed money arrived at their new net long cattle position by adding 636 long positions, 187 short positions and unwinding 1,675 spread positions. This left them with 26.8% of total long open interest, 7.4% of total short open interest and 11.3% of total spread open interest.
Commercial traders reached their new net short position by liquidating 1,522 long positions and covering 2,694 short positions, leaving them in charge of 7.0% of total long open interest and 53.6% of total short open interest.
The CME Group reported total live cattle open interest last Tuesday was 292,110 contracts, down 4,137, or 1.40%, from 296,247 a week earlier.
The CME Group also reported that its most-active Dec contract month closed higher on Tuesday than it did a week earlier. Last Tuesday’s settlement was $110.12 per cwt, compared with $109.15 a week earlier. However, all of the gain came last Tuesday. Prior to that, the contract had been sinking.
FUNDS EXTEND NET LONG CORN POSITION
Meanwhile, managed money extended its newly acquired net long Chicago corn position last Tuesday to 23,890 contracts, up 15,529, or 185.7%, from 8,361 a week earlier. It was their largest net long cattle position in more than a year.
Commercials’ new net short corn position last Tuesday came to 237,823 contracts, up 18,543, or 8.46%, from 219,280 a week earlier. It was their largest net short corn position since March 10 when it was 253,173 contracts.
The CFTC said managed money arrived at its new net long corn position by liquidating 5,848 long positions, covering 21,377 short positions and unwinding 2,144 spread positions. This left them in charge of 13.4% of total long open interest, 11.7% of total short open interest and 12.7% of total spread open interest.
Commercials got to their new net short corn position by adding 8,399 long positions and 26,942 short positions, leaving them holding 29.8% of total long open interest and 46.9% of total short open interest.
The CME Group said total corn open interest last Tuesday was 1.397 million contracts, up from 1.381 million a week earlier.
CATTLE, BEEF RECAP
Fed cattle trading last week was reported in the Plains at $101 to mostly $102 per cwt on a live basis, down $1 to $2 from the previous week. Dressed-basis trading was seen at $160 to $161 per cwt, down $2 to $3.
The USDA choice cutout Monday was down $2.68 per cwt at $217.21, while select was up $0.66 at $207.76. The choice/select spread narrowed to $9.45 from $12.79 with 113 loads of fabricated product and 36 loads of trimmings and grinds sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Friday was at $141.47 per cwt, up $0.48. This compares with Monday’s Sep contract settlement of $141.50 per cwt, up $1.50.