During the week ended Tuesday, managed money, a proxy for large commodity index funds, nudged their collective net long live cattle futures position higher as cattle owners raised their total net short position.
That conclusion was drawn from Friday’s weekly Commitments of Traders report from the Commodity Futures Trading Commission.
FUNDS TAKE LONGER CATTLE POSITION
Tuesday, managed money had a collective net long live cattle futures position of 101,471 contracts, up 1,133, or 1.13%, from 100,338 a week earlier. It was their largest net long position since Nov. 4 when it was 107,500 contracts.
At the same time, cast cattle traders, known as commercial traders, had a total net short live cattle position of 134,559 contracts, up 2,835, or 2.15%, from 131,724 a week earlier. It was their largest net short position since Oct. 14 when it was 136,387 contracts.
Tuesday, managed money held 117,976 long live cattle positions, or 35.8% of total open interest, for a gain of 1,711 contracts. They also held 16,505 short positions, or 5.0% of total open interest, for a gain of 578, and they held 32,496 spread positions, or 9.9% of total open interest, for a gain of 67.
Commercials, Tuesday, held 43,539 long live cattle positions, or 13.2% of total open interest, for a gain of 1,673 contracts, while also holding 178,098 short positions, or 54.0% of total open interest, for a gain of 4,508.
Live cattle open interest at the CME Tuesday totaled 329,644 contracts, up 5,045, or 1.55%, from 324,599 a week earlier.
The Apr live cattle contract dropped in value during the CFTC-reporting week to settle at $234.57 per cwt, compared with $238.97 a week earlier.
FUNDS ADVANCE CORN SHORTS
Tuesday, managed money had a net short corn futures position of 95,867 contracts, up 5,209, or 5.75%, from 90,658 a week earlier.
At the same time, commercial traders had a total net short corn position of 184,466 contracts, down 14,310, or 7.20%, from 198,776 a week earlier.
Managed money Tuesday held 209,697 long corn positions, or 12.6% of total open interest, for a gain of 7,127 contracts. They also held 305,564 short positions, or 18.3% of total open interest, for a gain of 12,336, and they held 252,997 spread positions, or 15.2% of total open interest, for a gain of 30,502.
Commercials Tuesday held 467,997 long corn positions, or 28.7% of total open interest, for a gain of 4,950, and they held 652,463 short positions, or 39.1% of total open interest, for a decline of 9,360.
Total corn open interest at the CME was 1.668 million contracts, up 54,400, or 3.37%, from 1.613 million a week earlier.
The Mar corn contract ended the CFTC-reporting week at $4.23 ¾ a bushel, compared with $4.19 ¾ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $232.66 per cwt to $237.00, compared with the previous week’s range of $231.21 to $235.55 per cwt. FOB dressed steers and heifers went for $365.05 per cwt to $371.88, compared with $362.33 to $366.74.
The USDA choice cutout Friday was up $1.47 per cwt at $368.92 while select was up $0.66 at $362.39. The choice/select spread widened to $6.53 from $5.72 with 94 loads of fabricated product and 29 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $404.45 per cwt, and 50% beef was $152.07.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $0.95 to $1.10 a bushel over the Mar corn contract, which settled at $4.30 1/2, up $0.06 1/2.
The CME Feeder Cattle Index for the seven days ended Thursday was $363.48 per cwt, down $1.75. This compares with Friday’s Jan contract settlement of $364.80, up $1.07.