Large commodity index funds, called managed money in the industry, expanded their collective net long live cattle positions during the week ended Tuesday while cattle owners put on some fresh short positions.
The information came from the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
FUNDS PUSH NET LONG CATTLE POSITION
Tuesday, managed money had a collective net long live cattle position of 111,771 contracts, up 7,372, or 7.06%, from 104,399 a week earlier. It was their fifth straight week of pushing their net long position to the largest it has been since Oct. 28 when it was 115,139 contracts.
Also on Tuesday, cattle traders, called commercial traders, had a total net short live cattle position of 135,174 contracts, up 2,337, or 1.76%, from 132,837 a week earlier.
Managed money Tuesday held 126,320 long live cattle positions, or 37.6% of total open interest, for a gain of 5,021 contracts. They also held 14,549 short positions, or 4.3% of total open interest, for a loss of 2,351 contracts, and they held 36,208 spread positions, or 10.8% of total open interest, for a gain of 2,877.
Commercial traders Tuesday held 43,835 long live cattle positions, or 13.0% of total open interest, for a loss of 936 contracts, and they held 179,009 short positions, or 53.2% of total open interest, for an increase of 1,401.
Total live cattle open interest at the CME Tuesday was 336,190 contracts, up 3,976, or 1.20%, from 332,214 a week earlier.
The Apr futures contract rose during the CFTC-reporting week to settle at $241.62 per cwt from $237.40 a week earlier.
FUNDS COVER A FEW SHORT CORN POSITIONS
Tuesday, managed money had a collective net short corn position of 80,613 contracts, down 983, or 1.20%, from 81,596 a week earlier.
At the same time, commercials had a total net short corn position of 207,268 contracts, up 4,284, or 2.11%, from 202,984 a week earlier.
At that time, managed money held 213,807 long corn positions, or 12.3% of total open interest, for a gain of 910 contracts. They also held 294,420 short positions, or 16.9% of total open interest, for a loss of 73, and they held 272,904 spread positions, or 15.7% of total open interest, for a gain of 2,091.
Commercials held 462,208 long corn positions, or 26.6% of total open interest, for a gain of 8,841 contracts, and they held 669,476 short positions, or 38.5% of total open interest, for a gain of 13,125.
Open interest at the CME totaled 1.741 million contracts, up 34,000, or 1.99%, from 1.707 a week earlier.
The Mar corn contract rose in value during the CFTC-reporting week to settle at $4.28 ½ a bushel versus $4.26 ½ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $236.32 per cwt to $242.85, compared with the previous week’s range of $233.00 to $240.00 per cwt. FOB dressed steers and heifers went for $369.10 per cwt to $380.59, compared with $365.91 to $371.92.
The USDA choice cutout Friday was up $2.08 per cwt at $369.33 while select was up $4.36 at $364.53. The choice/select spread narrowed to $4.80 from $6.88 with 46 loads of fabricated product and 14 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $415.28 per cwt, and 50% beef was $157.93.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $0.98 to $1.12 a bushel over the Mar corn contract, which settled at $4.30 1/4, down $0.04 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $374.47 per cwt, down $0.69. This compares with Friday’s Mar contract settlement of $367.42, up $3.35.