Managed money, a proxy for large commodity investment firms, cut their collective net long live cattle futures position for the fifth straight week as of Tuesday, according to data from the Commodity Futures Trading Commission.
The CFTC’s weekly Commitments of Traders report Friday showed that managed money’s new net long live cattle futures position as of Tuesday at 59,929 contracts, down 8,652, or 12.6%, from 68,581 the previous Tuesday. It was their lowest net long position since Sep. 11 when it was 54,110 contracts.
During the same CFTC reporting week, cattle producers, known as commercial traders, cut their collective net short live cattle futures position to 143,129 contracts, down 3,081, or 2.11%, from 146,210 the previous Tuesday. It was their lowest net short position since Sep. 18 when it was 143,769 contracts.
The CFTC COT report showed that managed money arrived at its new net long cattle position by liquidating 3,848 long positions, adding 4,804 short positions and putting on 648 new spread positions. This left their position representing 25.4% of total long open interest, 8.4% of total short positions and 14.5% of total spread open interest.
Commercials got to where they were by adding 1,626 long positions and covering 1,455 short positions, leaving them in control of 10.2% of total long open interest ant 50.8% of total short open interest.
CME Group data showed that total live cattle open interest as of Tuesday to be 353,435 contracts, up 8,172, or 2.37%, from 345,263 the week before.
CME Group data further showed that the most-active Dec cattle futures contract declined in value during the CFTC reporting week, settling Tuesday at $115.42 per cwt, down $1.38, or 1.18%, from $116.80.
FUNDS ADD CAUTIOUSLY TO LONG CORN POSITION
Meanwhile, managed money cautiously added to its net long corn position during the week ended Tuesday, to being long by 14,562 contracts, up 2,992, or 29.5%, from 11,570 the previous Tuesday.
At the same time, commercial traders added to their net short position to being short by 294,493 contracts, up 13,173, or 4.68%, from 281,320 the previous week.
The CFTC said managed money arrived at its new net long corn position by liquidating 5,866 long positions, covering 8,858 short positions and putting on 15,778 spread positions. This left them holding 13.9% of total long open interest, 13.0% of total short open interest and 13.1% of total spread open interest.
Commercial traders got to their new net short corn position by adding 96 long positions and 13,269 short positions, leaving them with 27.3% of total long open interest and 44.5% of total short open interest.
The CME Group listed total corn open interest as of Tuesday at 1.712 million contracts, up 26,587, or 1.58%, from 1.685 million the week before.
CME Group data also showed the most-active Dec corn futures contract rising during the week to settle Tuesday at $3.73 ¼ per bushel down $0.08 ½, or 2.33%, from $3.64 ¾ a bushel a week earlier.
CATTLE, BEEF RECAP
Cash cattle last week traded at $112 to mostly $114 to $115 per cwt on a live basis and at $178 to mostly $179 to $180 on a dressed basis, both steady to down $1.
The USDA choice cutout Friday was down $0.87 per cwt at $215.20, while select was off $0.39 at $198.72. The choice/select spread narrowed to $16.48 from $16.96 with 73 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $151.63 per cwt, down $0.60. This compares with Friday’s Nov settlement of $149.00, down $1.17.