Funds Boost Net Long Cattle Position

Managed money, or large commodity investment funds, boosted their net long live cattle futures position during the week ended Tuesday for the third straight week.  At the same time, cash-oriented traders increased their net short positions for the second straight week.

The Commodity Futures Trading Commission revealed the numbers Friday in its weekly Commitments of Traders report.  The report showed that managed money held a net long live cattle position of 27,015 contracts, 3,383 more than the 23,632 on the previous Tuesday for a gain of 14.3%.

During the week, commercial traders, those who theoretically could make or take delivery of a futures contract, extended their net short position by 2,389 contracts, or 3.86% to 64,233 from 61,844.

Total open interest during the week rose 8,135 contracts, or 3.33%, to 252,452 from 244,317, said the CME Group on its Web page.

Managed money got to its new position by adding 1,887 long positions and covering 1,496 short positions while expanding their spread positions by 4,637.  This left them representing 25.7% of total long open interest and 15.0% of total short open interest.

Commercial traders reached their latest reported net short position by liquidating 574 long positions and adding 1,815 short positions to leave them in control of 14.8% of total long open interest and 40.3% of total short open interest.

During the latest reporting week, the most-active Oct futures contract set a new contract low on Thursday at $105.25 per cwt before bouncing on Friday and gapping higher on Monday.  In the end, it rose $3.10 per cwt, or 2.83%, from $109.47 to settle at $112.57.




During the latest CFTC week, managed money continued selling corn, extending their net short position.  Their new position is 67,571 contracts, up 37,813, or 127.1%, from 29,758 the previous week.

This is the sixth straight week of selling for managed money in a move that took them from a high of being net long 268,412 contracts the week ended June 14.

Meanwhile, commercials continued to cut their short positions, a move that also began with the peak of 554,842 contracts the week ended June 14.  The new position is short by 250,009 contracts, down 46,438, or 15.7%, from 296,447 the previous week.

Total corn open interest during the week rose 11,744 contracts, or 0.90%, to 1.310 million from 1.298 million, CME Group data showed.

Managed money reached its new corn position by liquidating 14,770 long positions and acquiring 23,043 short positions and 17,943 spreads.  This left them representing 11.3% of total long open interest and 16.5% of total short open interest.

Commercials got there by adding 14,647 long positions and covering 31,791 short positions to leave them in control of 25.6% of total long open interest and 44.7% of total short open interest.

The most-active Dec contract set a contract low of $3.33 ¼ a bushel as it moved to a close at $3.39 ½ from $3.48 ½.




Cash cattle markets Friday traded $1 to $2.50 per cwt higher at $116 to $117.50 on a live basis and $186 to $188 dressed.

The USDA’s choice cutout Friday was $1.19 per cwt lower at $197.57, while select was off $0.11 at $189.60.  The choice/select spread narrowed to $7.97 from $9.05 with 85 loads of fabricated product sold into the spot market.

The CME Feeder Cattle Index for the seven days ended Thursday was $142.49 per cwt, up $1.44.  This compares with the Aug settlement Friday of $140.05, down $0.42.