Large commodity investment firms, called managed money, continued a trend of buying live cattle futures during the week ended Tuesday, according to data from the Commodity Futures Trading Commission’s weekly Commitments of Traders report on Friday.
Managed money’s collective net long position on Tuesday totaled 57,888 contracts, up 1,121, or 1.97%, from 56,767 the previous Tuesday. It was their largest long position since Aug. 25 when it was 60,546 contracts.
During the same week, commercial traders, those who own the cattle and approach the market primarily as hedgers, trimmed their collective net short position to 135,789 contracts as of Tuesday, down 47, or 0.03%, from 135,836 a week earlier.
CTFC data showed that managed money arrived at their new cattle position by liquidating 244 long positions, covering 1,375 short positions and putting on 5,073 spread positions. This left their position representing 26.6% of total long open interest, 6.9% of total short open interest and 13.0% of total spread open interest.
Commercials got to their new cattle position by adding 752 long positions and 705 short positions, leaving them in charge of 7.3% of total long open interest and 53.6% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday stood at 293,219 contracts, up 1,109, or 0.38%, from 292,110 a week earlier.
CME Group data also showed that the most-active Dec contract rose in value during the CFTC reporting week to settle Tuesday at $111.57 per cwt, up from $110.12 a week earlier.
FUNDS BUY MORE CORN
During the same week, managed money extended their net long corn position to a level not seen in more than a year. The total corn position for managed money Tuesday was 46,195 contracts, up 22,305, or 93.4%, from 23,890 a week earlier.
Meanwhile, commercial traders extended their net short corn position to 254,857 contracts, up from 237,823 a week earlier. It was their largest net short position since Feb. 18 when it was 268,901 contracts.
The CFTC said managed money arrived at their new corn position by adding 11,919 long positions, covering 10,386 short positions and putting on 8,826 new spread positions. This left them in charge of 13.6% of total long open interest, 10.5% of total short open interest and 12.8% of total spread open interest.
Commercials got to their new corn position by adding 19,200 long positions and 36,324 short positions, leaving them holding 29.9% of total long open interest and 47.4% of total short open interest.
The CME Group reported total corn open interest as of Tuesday at 1.458 million contracts, up from 1.397 million a week earlier, a gain of 61,417, or 4.40%.
The CME Group also said the most-active Dec contract rose during the CFTC reporting week to settle Tuesday at $3.66 per bushel, up from $3.61 ¾ a week earlier, a gain of $0.42 ½, or 1.17%.
CATTLE, BEEF RECAP
Fed cattle trading last week was reported in the Plains at $103 to $104 per cwt on a live basis, up $2 from the previous week. Dressed-basis trading was reported at $162 to $165, per cwt, up $2 to $4.
The USDA choice cutout Friday was up $0.59 per cwt at $215.64, while select was up $0.55 at $203.94. The choice/select spread widened to $11.70 from $11.66 with 105 loads of fabricated product and 42 loads of trimmings and grinds sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was at $142.19 per cwt, up $0.98. This compares with Friday’s Sep contract settlement of $140.87 per cwt, up $0.95.