Large commodity investment funds continued to add to their collective net long live cattle futures position during the week ended Tuesday, taking them to their largest long position in 4 ½ months.
The Commodity Futures Trading Commission released the data Friday in its weekly Commitments of Traders report. The report showed that those large funds, called managed money, had a net long live cattle position on Tuesday of 51,461 contracts, up 6,358, or 14.1%, from 45,103 a week earlier. It was the largest since March 20 when it was 71,832 contracts.
The CFTC data also showed that commercial traders, mostly hedgers of cash positions, had a net short position of 127,399 contracts, up 3,962, or 3.21%, from 123,437 the previous week and their largest net short position since April 10, when it was 128,001 contracts.
The CFTC said managed money arrived at its new net long position by adding 1,819 long positions, covering 4,539 short positions and unwinding 1,189 spread positions. This left them holding 25.8% of total long open interest, 9.2% of total short open interest and 10.8% of total spread open interest.
Commercial traders got to where they were by liquidating 526 long positions and adding 3,436 short positions, leaving them in control of 12.2% of total long open interest and 53.3% of total short open interest.
The CME Group said total live cattle open interest on Tuesday was 310,247 contracts, down 3,930, or 1.25%, from 314,177 the previous Tuesday.
CME Group data also showed that the most-active Oct contract declined in value during the week ended Tuesday, settling at $109.30 per cwt, compared with $110.32 the previous Tuesday.
FUNDS BUY CORN
During the same week ended Tuesday, managed money bought corn heavily, although they still had a net short position at the close of business Tuesday.
The CFTC data showed managed money with a net short corn futures position of 95,613, down 69,310, or 42.0%, from 164,923 the week before and their lowest net short position since June 26 when it was 90,7674.
Meanwhile, commercial traders’ new net short corn position expanded to 267,805 contracts, up 51,719, or 23.9%, from 216,086 the previous week and their largest net short position since July 3 when it was 289,594 contracts.
The CFTC said managed money arrived at its new net short corn position by adding 12,887 long positions, liquidating 56,423 short positions and unwinding 1,075 spread positions. This left them representing 15.1% of total long open interest, 20.3% of total short open interest and 9.7% of total spread open interest.
Commercials got to their new net short corn position by liquidating 19,314 long positions and adding 32,405 short positions, leaving them in control of 27.2% of total long open interest and 41.7% of total short open interest.
CATTLE, BEEF RECAP
851 head of fed cattle sold Wednesday on the Livestock Exchange Video Auction at an average price of $110.07 per cwt, down from the last sale at $112 two weeks previous.
Cash cattle traded last week at $113 to mostly $114 per cwt on a live basis, up $1 to $2 from the previous week. Dressed-basis sales were reported at $178 per cwt, steady to up $2.
The USDA choice cutout Friday was up $0.95 per cwt at $204.75, while select was off $0.01 at $197.09. The choice/select spread widened to $7.66 from $6.70 with 82 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $148.92 per cwt, down $0.21. This compares with Friday’s Aug settlement of $152.85, up $1.65.