Managed money, a proxy for large commodity index funds, held their collective net long live cattle position nearly steady in the week ended Tuesday, while hedgers moved the bar on their net short positions only slightly as well.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS PRUNE LONG CATTLE POSITION
The CFTC data showed that managed money pruned their collective net long cattle position during the week to Tuesday’s 37,391 contracts from 37,422 a week earlier. This was a decline of only 31 contracts, or 0.08%.
At the same time, those hedgers, known as commercial traders, trimmed their collective short position to 105,717 contracts, down 847, or 0.81%%, from 104,870.
The CFTC said managed money arrived at their new net long cattle position by adding 849 long positions and 880 short positions while unwinding 3,418 spread positions. This left their position representing 23.1% of total long open interest, 9.6% of total short open interest and 10.6% of total spread open interest.
Commercial traders got to their new net short cattle position by adding 2,238 long positions and 3,085 short positions. This left them in charge of 15.7% of total long open interest and 53.9% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday amounted to 276,544 contracts, up 744, or 0.27%, from 275,800 a week earlier. It was the largest total open interest in about a month.
CME Group data also showed that the most-active Feb contract declined overall during the CFTC reporting week to settle Tuesday at $113.17 per cwt, down $0.78, or 0.68%, from $113.95 a week earlier.
FUND SELLING CORN AS COMMERCIALS COVER
In the same week, the CFTC reported that managed money pared their collective net long Chicago corn position to 251,099 contracts, down 15,461, or 5.80%, from 266,560 a week earlier.
Commercials, covered short positions during the week to end Tuesday with 657,596 contracts, down 17,384, or 2.58%, from 674,980.
The CFTC said managed money arrived at their new net long corn position by liquidating 9,574 long positions, adding 5,887 short positions and putting on two additional spread positions. This left them in charge of 19.4% of total long open interest, 4.3% of total short open interest and 9.6% of total spread open interest.
Commercials got to where they were by liquidating 19,723 long positions and covering 37,107 short positions, leaving them holding 24.2% of total long open interest and 63.6% of total short open interest.
The most-active Mar corn contract declined to settle Tuesday at $4.20 ¾ a bushel from $421 ½.
CATTLE, BEEF RECAP
Fed cattle trading was reported in the Plains last week at $110 to $112 per cwt on a live basis, mostly $110, steady to up $1 from the previous week. Dressed-basis trading was reported at $172 to $174 per cwt, steady to up $2.
The USDA choice cutout Friday was down $4.17 per cwt at $235.02, while select was off $2.42 at $217.51. The choice/select spread narrowed to $17.51 from $19.26 with 100 loads of fabricated product and 31 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.05 to $1.09 a bushel over the Mar CBOT futures contract, which settled at $4.20 1/2 a bushel, down $0.06.
The CME Feeder Cattle Index for the seven days ended Thursday was $139.18 per cwt, down $0.26. This compares with Friday’s Jan contract settlement of $139.77 per cwt, down $0.02.