Large commodity funds, known collectively as managed money, boosted their net long cattle position to its largest in nearly six months during the week ended Tuesday.
The Commodity Futures Trading Commission Friday reported managed money’s new net long position as of Tuesday was 19,789 contracts, the largest since the week ended Aug. 18. It also is up 6,177, or 45.4%, from 13,612 the previous week.
During the latest week, commercial traders, those who theoretically could make or take delivery of a futures contract, increased their collective net short position to 28,562 contracts, up 4,035, or 16.5%, from 24,527 the previous week.
The most-active Feb futures contract rose sharply during the latest CFTC week but peaked on Tuesday at $137.70 per cwt, forming a double top with Monday’s $137.65 and dropping from there. Tuesday, Feb closed at $136.77 up $6.57 from the previous week’s close at $130.20. The market was continuing a sharp rally that by then was more than a week old.
The CFTC said managed money arrived at its new net long position by adding 226 new long positions and covering 5,951 short positions and closing 473 spread positions. This left them representing 18.7% of total long positions and 11.2% of total short positions.
Commercials got to their new Tuesday trading position by liquidating 962 long positions and adding 3,073 new short positions. This left them in control of 26.4% of total long open interest and 37.2% of total short open interest.
Total live cattle open interest rose 2,310 contracts, or 0.88%, during the week to 265,133 from 262,823, the CME Group said.
FUNDS TAKE NET SHORT CORN POSITION TO NEW HEIGHTS
Meanwhile, managed money took its net short corn position to the largest it has been in more than a year, moving to 168,750 contracts during the latest reporting week. This is up 28,058, or 19.9%, from 140,692 the previous week.
Commercials took their net short corn position to 193,796 contracts from 220,776 the previous week, down 26,980, or 12.2%, and the smallest since the week ended Nov. 24 when it was 196,570.
The CFTC said managed money arrived at their new net short position by adding 1,155 new long positions and 28,213 new short positions while accumulating 417 more spread positions. This left them representing 11.4% of total long open interest and 23.8% of total short open interest.
Commercial traders arrived at their new net short position by adding 15,237 new long positions and covering 11,743 short positions, leaving them in control of 24.4% of total long open interest and 38.7% of total short open interest.
Total corn open interest rose 37,770 contracts during the latest CFTC reporting week, a 2.87% gain, to 1.356 million from 1.318 million, the CME Group said.
The most-active Mar contract fell during the week to close at $3.53 a bushel from $3.62 ½ the previous week, a decline of $0.09 ½, or 2.62%, the CME said. The contract has since made a new low for the move and turned upward.
CASH CATTLE STEADY TO $1 LOWER
Cash cattle prices last week were steady to $1 per cwt lower than the previous week at $132 to $133 on a live basis and $210 to $212 on a dressed basis. Cattle owners resisted packer bids until late on Friday. Many trades were done well after the futures market closed.
The USDA reported sharply higher wholesale beef prices again on Friday in light volume. Choice was up $1.61 per cwt from Thursday at $232.20, and select was up $3.09 at $226.98. The choice/select spread narrowed to $5.22 from $6.70, and there were 74 loads of fabricated product sold into the spot market.
For the week, the choice cutout was up $19.61 per cwt, or 9.22%, from $212.59. Select was up $21.76, or 10.6%, from $205.22.
The CME Feeder Cattle Index for the seven days ended Thursday was $166.54 per cwt, down $1.40. This compares with the Jan settlement Friday of $159.42, down $4.40.