Managed money, or large commodity investment funds, increased their net long live cattle futures holdings for the fifth straight week during the week ended Tuesday, while commercial traders boosted their net short positions for the third straight week.
The Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday showed managed money had a new net long position of 38,479 contracts, up 11,464, or 42.4%, from 27,015 the previous week. It was their largest net long cattle position since the week ended March 22 when they were long by 42,578 contracts.
Commercial traders, those who theoretically could make or take delivery of a futures contract, increased their net short position by 7,817 contracts, or 12.2%, to 72,050 from 64,233. It was their largest net short position since the week ended May 31 when it was 74,842 contracts.
The CFTC said managed money got to its new position by adding 3,862 long positions and covering 7,602 shorts while unwinding 2,470 spread positions. This left them representing 27.2% of total long open interest and 11.9% of total short open interest.
Commercial traders, though, got to their new net short positions by covering 1,010 long positions and adding 6,807 short positions. This left them in control of 14.3% of total long open interest and 42.9% of total short open interest.
The CME Group said total live cattle open interest during the CFTC week declined 173 contracts, or 38.3%, to 252,279 from 252,452.
During the latest week, the most-active Oct futures contract continued to rally, settling Tuesday at $114.57 per cwt, up from $113.05 a week earlier for a gain of $1.52, or 1.34%.
FUNDS BOOST NET SHORT CORN POSITION
Meanwhile, managed money continued to add to its net short corn position for the seventh straight week, ending Tuesday net short by 106,768 contracts, up 39,197, or 58.0%, from 67,571. This is their shortest position since the week ended April 12 when it was 146,384 contracts.
Also during the latest CFTC reporting week, commercial traders cut their net short corn position to 213,297 from 250,009, down 36,712, or 14.7%. This is their smallest net short position since the week ended April 12 when it was 176,940.
Total open interest for the week rose 31,725 contracts, or 2.42%, to 1.342 million from 1.310 million, the CME Group said.
Managed money arrived at its new position by adding 723 long positions, 39,920 shorts and 452 spreads. This left them representing 11.1% of total long open interest and 19.1% of total short open interest.
Commercials got to their new position by adding 20,064 long positions and covering 16,648 short positions, leaving them in control of 26.5% of total long open interest and 42.5% of total short open interest.
During the week, the most-active Dec contract continued its decline, settling Tuesday at $3.34 a bushel, down $0.05 ½, or 1.62%, from $3.39 ½ a week earlier.
CASH CATTLE MARKET GENERALLY QUIET
Cash cattle markets Friday were generally quiet after trading Thursday $1 to $2 per cwt higher, at $118 to $119 on a live basis and $188 to $190 dressed.
The USDA’s choice cutout Friday was $0.26 per cwt lower at $199.00, while select was off $0.65 at $190.20. The choice/select spread widened to $8.80 from $8.41 with 81 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $146.03 per cwt, up $0.39. This compares with the Aug settlement Friday of $149.65, up $2.07.