Large commodity investment firms, known as managed money, extended their collective net long live cattle position in the week ended Tuesday for the fifth straight week, according to Friday’s weekly Commitments of Traders report from the Commodity Futures Trading Commission.
At the same time, commercial traders, those who own the cattle and theoretically could make or take delivery on a futures contract, increased their collective net short position, also for the fifth straight week.
FUNDS BOOST LONG POSITION
Tuesday, managed money’s net long live cattle position stood at 76,432 contracts, up 2,643, or 3.58%, from 73,789 a week earlier. It was their largest net long position since Aug. 31 when it was 80,207 contracts.
Commercial traders had a total net short cattle position Tuesday of 146,124 contracts, up 2,582, or 1.80%, from 143,542 a week earlier. It was their largest net short position since Sep. 7 when it was 148,429 contracts.
The CFTC said managed money arrived at their new cattle position by adding 554 long positions, covering 2,089 short positions and unwinding 1,227 spread positions. This left them in control of 30.7% of total long open interest, 5.7% of total short open interest and 10.5% of total spread open interest.
Commercials got to their new cattle position by liquidating 2,619 long positions and covering 37 short positions, leaving them holding 8.7% of total long open interest and 56.5% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 305,691 contracts, down 4,405, or 1.42%, from 310,096 a week earlier.
CME data also showed that the most-active Feb live cattle contract rose in value during the CFTC reporting week to end Tuesday at $139.22 per cwt, up from $137.90 a week earlier.
FUNDS REVERSE, GET LONGER CORN
After selling corn positions last week, managed money reversed and took on a larger net long position in Chicago corn futures during the week ended Tuesday. Their new position totaled 320,887 contracts, up 17,353, or 5.72%, from 303,534 a week earlier.
Commercials, meanwhile had a new net short position of 641,126 contracts, up 27,056, or 4.41%, from 614,070 a week earlier. It was their largest net short position since June 15 when it was 606,151 contracts.
Managed money arrived at their new position by adding 7,017 long positions, covering 10,336 short positions and unwinding 854 spread positions. This left them with 24.3% of total long open interest, 1.9% of total short positions and 8.1% of total spread positions.
Commercials added 16,582 long positions and 43,638 short positions.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $140.55 to $143.75 per cwt, compared with the previous week’s range of $138.98 to $140.92. FOB dressed steers and heifers went for $219.10 to $222.88 per cwt, versus $209.66 to $220.75.
The USDA choice cutout Friday was down $0.01 per cwt at $264.54, while select was up $0.56 at $252.24. The choice/select spread narrowed to $12.30 from $12.87 with 46 loads of fabricated product and 29 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 $1.30 to $1.40 a bushel over the Dec futures and for southwest Kansas were unchanged at $0.40 over Dec, which settled at $5.88 1/2 a bushel, unchanged.
No delivery intentions were posted against the Dec live cattle contract Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $161.51 per cwt down $0.12. This compares with Friday’s Jan contract settlement of $164.87 per cwt, up $0.80.