Managed money, a proxy for large commodity index funds, continued to take on a larger collective net long live cattle futures position in the week ended Tuesday as hedgers advanced their total net short position.
The data for that assessment came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
LARGEST NET LONG POSITION IN YEARS
Tuesday, managed money had a collective net long live cattle position of 100,516 contracts, up 7,691, or 8.29%, from 92,825 a week earlier and the largest net long position since Sep. 26, 2023, when it was 103,763 contracts.
Hedgers, or commercial traders, had a total net short position Tuesday of 124,947 contracts, up from 116,759 a week earlier and their largest short position since Oct. 10, 2023, when it was 127,620 contracts.
The CFTC said managed money arrived at their new posit5ion by adding 8,029 long positions, 338 short positions and 4,971 spread positions. This left them in charge of 32.8% of total long open interest, 4.3% of total short open interest and 15.5% of total spread open interest.
Commercials reached Tuesday’s new net short position by adding 1,000 long positions and 9,188 short positions, leaving them holding 11.1% of total long open interest and 46.6% of total short open interest.
The CFTC also said total live cattle open interest Tuesday stood at 352,341 contracts, up 19,881, or 5.98%, from 332,460 a week earlier.
The CME Group said the most-active Dec contract declined in value during the CFTC-reporting week to settle Tuesday at $187.95 per cwt, compared with $188.12 a week earlier. All of the decline happened on Tuesday, the first day of a four-day setback.
FUNDS COVER MORE CORN SHORTS
Meanwhile, managed money covered short corn positions for the second straight week, ending Tuesday with a collective net short position of 35,506 contracts, down 52,352, or 59.6%, from 87,858 a week earlier.
Commercials Tuesday had a total net short position of 272,042 contracts, up 62,836, or 30.0%, from 209,206 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 17,183 long positions, covering 35,167 short positions and unwinding 21,705 spread positions. This left them with 14.5% of total long open interest, 16.6% of total short open interest and 12.2% of total spread open interest.
Commercials reached their new positions by adding 3,320 long positions and 66,156 short positions, leaving them with 27.8% of total long open interest and 44.0% of total short open interest.
Total corn open interest was 1.688 million contracts versus 1.643 million a week earlier.
Dec settled Tuesday at $4.13 ¾ a bushel versus $4.16 ½.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $189.82 per cwt to $200.00, compared with the previous week’s range of $187.95 to $194.48 per cwt. FOB dressed steers, and heifers went for $294.97 per cwt to $301.18, compared with $293.66 to $298.77.
The USDA choice cutout Friday was down $1.26 per cwt at $316.34 while select was down $0.34 at $285.03. The choice/select spread narrowed to $31.31 from $32.23 with 67 loads of fabricated product and 27 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $345.72per cwt, and 50% beef was $70.87.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.26 to $1.45 a bushel over the Dec corn contract and unchanged in Kansas at $0.25 over Dec, which settled at $4.14 1/2 a bushel, up $0.03 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $250.98 per cwt, down $0.22. This compares with Friday’s Nov contract settlement of $246.877, up $1.50.