During the latest large downturn in live cattle futures, large commodity investment funds, called managed money, took on a less-aggressive net long position, as cattle owners covered short positions.
FUNDS LIQUIDATE LONG POSITIONS
As it continues to catch up with weekly reports that were held up by the government shutdown, the Commodity Futures Trading Commission reported that for the week ended Tuesday, Nov. 18, managed money had a net long live cattle futures position of 96,027 contracts, down 5,150, or 5.09%, from 101,177 a week earlier. It was their smallest net long position since Oct. 22, 2024, when it was 92,825 contracts.
At the same time, cattle owners, called commercial traders, had a total net short live cattle position of 116,247 contracts, down 3,773, or 3.14%, from 120,020 a week earlier for their smallest net short position since Oct. 15, 2024, when it was 114,710 contracts.
On Nov. 18, managed money held 115,596 long live cattle positions, or 34.6% of total open interest, for a decline of 3,832 contracts from a week earlier. They also held 19,569 short positions, or 5.9% of total open interest, for a gain of 1,318, and they held 40,365 spread positions, or 12.1% of total open interest, for a gain of 1,157 contracts.
Commercials, meanwhile, held 43,430 long live cattle positions, or 13.0% of total open interest for a gain of 1,699 contracts. They also held 159.677 short positions, or 47.9% of total open interest for a decline of 2,074.
Total open interest at the CME that Tuesday came to 333,615 contracts, down 4,289, or 1.27%, from 337,904 a week earlier.
During that CFTC-reporting week, the Feb contract fell to $220.85 per cwt from $$227.00.
FUNDS GET LONG CORN
Tuesday, Nov. 18, managed money had a collective net long corn position of 48,788 contracts, up from a net short position of 37,350 contracts a week earlier. It was the first time they had held a net long position since May 6.
At the same time, commercial traders had a total net short corn position of 327,680 contracts, up 74,574, or 29.5%, from 253,106 contracts, their largest net short position since May 6 when it was 332,672 contracts.
On Nov. 18, managed money held 251,002 long corn positions, or 15.5% of total open interest, for a gain of 31,866 contracts from a week earlier. They also held 202,214 short positions, or 12.5% of total open interest, for a decline of 54,272, and they held 197,011 spread positions, or 12.2% of total open interest, for a gain of 7,549.
Commercials, meanwhile, held 384,556 long corn positions, or 23.8% of total open interest, for a decline of 12,459 contracts, and they held 712,236 short positions, or 44.1% of total open interest, for a gain of 62,115.
At the CME, total open interest stood at 1.616 million contracts, up 13,001, or 0.81%, from 1.603 million.
During the CFTC-reporting week, the Mar corn contract rose to $4.49 ½ a bushel from $4.44 ½.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $218.97 per cwt to $227.15, compared with the previous week’s range of $218.52 to $225.00 per cwt. FOB dressed steers and heifers went for $339.66 per cwt to $354.27, compared with $331.92 to $349.49.
The USDA choice cutout Friday was down $0.67 per cwt at $357.44 while select was up $0.76 at $344.22. The choice/select spread narrowed to $13.22 from $14.65 with 95 loads of fabricated product and 25 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $397.92 per cwt, and 50% beef was $133.42.
The USDA said basis bids for corn from feeders in the Southern Plains were steady to down $0.05 at $0.90 to $1.10 a bushel over the Mar corn contract, which settled at $4.40 3/4, down $0.05 3/4.
No live cattle contracts were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $346.77 per cwt, up $1.30. This compares with Friday’s Jan contract settlement of $339.10, down $4.30.