Managed money, a proxy for large commodity index funds, extended their collective net long live cattle futures position as of Monday, while hedgers increased their collective net short position, the Commodity Futures Trading Commission said Monday in its weekly Commitments of Traders report.
The report usually comes out on Friday publishing positions as of the previous Tuesday. However, because of the holidays, the data was released Monday for positions as of the previous Monday.
FUNDS BOOST CATTLE POSITION
Managed money increased their collective net long cattle position to 45,777 contracts, up 5,965, or 15.0%, from 39,812 the previous Tuesday. It was their largest net long position since Oct. 13 when it was 54,322 contracts.
Those hedgers, those who own the cattle, are called commercial traders. They increased their net short cattle position to 118,948 contracts as of last Monday, up 5,723, or 5.05%, from 113,225 the previous Tuesday. It was their largest net short position since Oct. 13 when it was 125,489 contracts.
The CFTC said managed money arrived at their new net long cattle position by adding 2,048 long positions, covering 3,917 short positions and unwinding 530 spread positions. This left their position representing 24.4% of total long open interest, 8.4% of total short open interest and 11.9% of total spread open interest.
Commercials got to where they were by liquidating 938 long positions and adding 4,785 short positions, leaving them in charge of 13.4% of total long open interest and 54.8% of total short open interest.
The CME Group said total live cattle open interest as of last Monday, came to 286,808 contracts, up 1,374, or 0.48%, from 285,434 the previous Tuesday.
The CME Group also said the most-active Feb live cattle contract rose into last Monday, settling at $114.65 per cwt, up from $112.87 the previous Tuesday.
FUNDS REVERSE, GET LONGER CORN
At the same time, managed money reversed its three-week trend toward selling Chicago corn futures and got longer. Their new net long corn position as of Monday was 247,108 contracts, up 18,801, or 8.23%, from 228,307 the previous Tuesday.
Commercial traders extended their net short position to 665,313 contracts, up 18,011, or 2.78%, from 647,302.
The CFTC said managed money arrived at their new net long corn position by adding 8,887 long positions, covering 9,994 short positions and putting on 1,994 spread positions. This left them with 19.3% of total long open interest, 4.6% of total short open interest and 9.2% of total spread open interest.
Commercials got to where they were by liquidating 5,675 long positions and adding 12,336 short positions, leaving them holding 24.3% of total long open interest and 63.7% of total short open interest.
CATTLE, BEEF RECAP
Fed cattle trading was reported in the Plains last week at $110 per cwt on a live basis, up $2 to $5 from the previous week. Dressed-basis trade was at $172, up $6 to $7.
The USDA choice cutout Monday was up $0.28 per cwt at $207.82, while select was off $1.28 at $196.65. The choice/select spread widened to $11.17 from $9.62 with 122 loads of fabricated product and 39 loads of trimmings and grinds sold into the spot market.
The USDA reported Monday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.21 a bushel over the Mar CBOT futures contract, which settled Monday at $4.56 1/2 a bushel, up $0.05 1/2.
No cattle contracts were tendered for delivery against the Dec contract Monday.
The CME Feeder Cattle Index for the seven days ended Friday was $138.29 per cwt, down $0.17. This compares with Monday’s Jan contract settlement of $141.00 per cwt, up $0.07.