Large commodity investment funds, called managed money, increased their net long live cattle futures position during the week ended Tuesday, Feb. 12, their 12th straight increase.
The data was made known Tuesday by the Commodity Futures Trading Commission through its Commitments of Traders report. The report usually comes out weekly on Friday, but was delayed by the partial government shutdown. The CFTC has been releasing two a week since then in an effort to catch up.
The new net long position for managed money on Feb. 12 was 110,723 contracts, up 3,774, or 3.53%, from 106,949 the previous week. It was their largest net long position in more than a year.
During the same reporting week, commercial traders, those who own the cattle and theoretically could make or take delivery of a futures contract, increased their collective net short position by 3,836 contracts, or 2.11%, to 185,359 contracts from 181,523. It also was their largest net short position in more than a year.
The CFTC said managed money arrived at its new net long cattle position by adding 3,594 long positions, covering 180 and putting on 3,486 new spread positions. This left them representing 32.6% of total long open interest, 4.1% of total short open interest and 14.5% of total spread open interest.
Commercials got to where they were by liquidating 4,263 long positions and covering 427 short positions, leaving them in control of 8.0% of total long open interest and 55.7% of total short open interest.
CME Group data show total live cattle open interest on Feb. 12 at 389,101 contracts, up 2,338, or 0.60%, from 386,763 the previous week.
CME Group data also show that the most-active Apr delivery month rose during the CFTC reporting week to settle Feb. 12 at $127.87 per cwt, compared with $127.62 a week earlier.
FUNDS SELL MORE CORN
Meanwhile, managed money continued to sell corn futures, expanding their collective net short position to 32,825 contracts during the week ended Feb. 12 from 6,584 the week before, an increase of 26,241, or 398.6%.
Commercials cut their net short position during the week by 41,411 contracts, or 15.1%, to 232,126 contracts from 273,537 the previous week.
The CFTC said managed money arrived at its new corn position by adding 9,819 long positions, 36,060 short positions and unwinding 2,709 spread positions. This left them representing 12.5% of total long open interest, 14.3% of total short open interest and 14.8% of total spread open interest.
Commercials got to their new corn position by adding 52,349 long positions and 10,938 short positions, leaving them with 28.7% of total long open interest and 42.0% of total short open interest.
CME Group data showed total corn open interest on Feb. 12 at 1.750 million contracts, up 46,065, or 2.70%, from 1.704 million the week before.
CATTLE, BEEF RECAP
Cash cattle trade took place late last week at mostly $126 to $126.50 per cwt on a live basis, up $0.50 to $1 from the previous week, and at mostly $202, up $2 to $4.
The USDA choice cutout Wednesday was down $0.21 per cwt at $219.46, while select was down $0.94 at $212.79. The choice/select spread widened to $6.67 from $5.94 with 97 loads of fabricated product sold into the spot market.
There were two steer delivery tenders at zero Wednesday plus three heifer retenders and 14 steer retenders at 1. There were three heifer and 14 steer demands at 1.
The CME Feeder Cattle index for the seven days ended Friday, was $140.46 per cwt, up $0.13. This compares with Wednesday’s Mar contract settlement of $143.87, up $0.42.