Large commodity investment funds, called managed money by traders, advanced their collective net long live cattle futures position during the week ended Tuesday as hedgers expanded their net short position.
The information came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
Managed money’s new net long live cattle futures position Tuesday came to 31,189 contracts, up 4,111, or 15.2%, from 27,078 a week earlier. It was their largest net long position since Feb. 11 when it was 34,964 contracts.
Commercial traders, those traders who own the cattle at some point and theoretically could make or take delivery of a futures contract, expanded their collective net short cattle position in the CFTC reporting week to end at 115,196 contracts, up from 111,546 the previous Tuesday. This was a gain of 3,650 contracts, or 3.27%, and took them to their largest net short position since Feb. 18 when it was short by 130,617 contracts.
The CFTC said managed money arrived at their new net short position by adding 4,909 long positions, 798 short positions and unwinding 1,404 spread positions. This left their net position representing 20.3% of total long open interest, 9.3% of total short open interest and 14.9% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 1,705 long positions and adding 1,945 short positions, leaving them in charge of 10.7% of total long open interest and 51.6% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 279,825 contracts, up 1,144, or 0.41%, from 278,681 a week earlier.
CME Group data also showed that the most-active Oct futures contract declined during the week to settle Tuesday at $105.00 per cwt, down $1.12, or 1.06%, from $106.12.
FUNDS SELL MORE CORN
During the latest CFTC reporting week, managed money extended their collective net short Chicago corn futures position, while commercials trimmed their net short corn position.
Managed money’s new short corn position totaled 158,282 contracts, up 2,606, or 1.67%, from 155,676 a week earlier.
Commercial traders’ new short corn position amounted to 66,548 contracts, down 2,330, or 3.38%, from 68,878 a week earlier.
The CFTC said managed money arrived at their new net short corn position by adding 8,301 long positions 10,907 short positions and 6,717 spread positions. This left their net short position representing 10.3% of total long open interest, 20.2% of total short open interest and 13.0% of total spread open interest.
Commercial traders got to where they were by adding 4,648 long positions and 2,318 short positions, leaving them in charge of 32.6% of total long open interest and 36.8% of total short open interest.
The CME Group said total corn open interest as of Tuesday was 1.578 million contracts, up from 1.523 million a week earlier, a gain of 55,039, or 3.61%.
The CME Group also said the most-active Dec corn futures contract declined in value during the week to close at $3.30 a bushel, down from $3.30 ¾.
CATTLE, BEEF RECAP
Fed cattle trading was reported last week at $97 to $97.50 per cwt on a live basis, up $2 to down $2.50 from the previous week. Dressed-basis trading was at $160 per cwt, up $2.
The USDA choice cutout Friday was up $1.46 per cwt at $203.26, while select was down $1.61 at $189.89. The choice/select spread widened to $13.37 from $10.30 with 72 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday was $138.58 per cwt, down $0.66. This compares with Friday’s Aug contract settlement of $144.67, up $1.65.