Managed money, a moniker for large commodity investment funds, increased the size of their collective net long live cattle position in the week ended Tuesday, while cattle owners extended their total net short position.
The information came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS GET LONGER CATTLE
As of Tuesday, managed money had a collective net long live cattle position of 63,648 contracts, up 2,547, or 4.17%, from 61,101 a week earlier. It was their largest cattle position since Feb. 22 when it was 80,955 contracts.
At the same time, cattle owners, called commercial traders, had a total net short cattle position of 117,670 contracts, up 149, or 0.13%, from 117,521 a week earlier. It was their largest net short position since April 26 when it was 126,255 contracts.
The CFTC said managed money arrived at their new cattle position by adding 4,188 long positions, 1,641 short positions and 951 spread positions. This left them with 32.3% of total long open interest, 9.0% of total short open interest and 11.5% of total spread open interest.
Commercial traders got to where they were by liquidating 475 long positions and covering 326 short positions, leaving them in control of 9.8% of total long open interest and 52.9% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 272,895 contracts, up 8,596, or 3.25%, from 264,299 a week earlier.
CME data also showed that the most-active Oct cattle contract declined in value during the CFTC reporting week to settle Tuesday at $144.60 per cwt, compared with $145.67 a week earlier.
FUNDS BUY CORN
Meanwhile, managed money bought corn futures and extended their total net long position to 175,527 contracts, up 32,881, or 23.1%, from 142,646 a week earlier.
Commercials had a total net short position Tuesday of 446,814 contracts, up 37,018, or 9.03%, from 409,796 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 12,063 long positions, covering 20,818 short positions and unwinding 2,435 spread positions. This left them with 17.8% of total long open interest, 4.5% of total short open interest and 9.1% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 24,977 long positions and adding 12,041 short positions, leaving them in control of 25.6% of total long open interest and 59.7% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.313 million contracts, up 3,504, or 0.27%, from 1.316 million a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $142.00 to $148.37 per cwt, compared with the previous week’s range of $142.85 to $149.00. FOB dressed steers, and heifers went for $220.22 to $229.10 per cwt, versus $215.08 to $225.57.
The USDA choice cutout Friday was down $0.78 per cwt at $262.76 while select was up $1.22 at $238.76. The choice/select spread narrowed to $24.00 from $26.00 with 82 loads of fabricated product and 19 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were steady at $2.40 to $2.50 a bushel over the Sep futures and for southwest Kansas were unchanged at $1.00 over Sep, which settled at $6.68 3/4, up $0.11 1/4.
No contracts were tendered for delivery against the Aug live cattle contract Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $182.25 per cwt up $1.25. This compares with Friday’s Aug contract settlement of $182.20, down $2.05.