For the third straight week, large commodity index funds, or managed money, reduced their collective net long live cattle futures position, while hedgers, trimmed their total net short position.
The data came from the weekly Commitments of Traders report Friday. The report is published each Friday for the positions of trader categories as of the preceding Tuesday.
FUNDS CUT CATTLE POSITION
As of Tuesday, managed money had a cumulative net long live cattle position of 33,236 contracts, down 6,849, or 17.1%, from 40,085 a week earlier. It was their smallest net long position since Aug. 2 when it was 32,069 contracts.
Hedgers, often called commercial traders since they own, or will own, the cattle and trade mostly from a hedging perspective, Tuesday had a total net short position of 92,882 contracts, down 3,297, or 3.43%, from 96,179 a week earlier. It was their smallest net short position since July 19 when it was 32,135 contracts.
The CFTC said managed money arrived at their new cattle position by liquidating 9,650 long positions, covering 2,801 short positions and putting on 464 spread positions. This left them with 24.2% of total long open interest, 11.6% of total short open interest and 13.9% of total spread open interest.
Commercials got to where they were Tuesday by adding 610 long positions and covering 2,687 short positions, leaving them in charge of 13.7% of total long open interest and 49.1% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 262,774 contracts, down from 270,733 a week earlier.
CME data also showed that the most-active Dec contract rose in value during the CFTC reporting week to settle Tuesday at $148.57 per cwt, compared with $147.50 a week earlier.
FUNDS BUY MORE CORN
As of Tuesday, managed money had a cumulative net long Chicago corn position of 254,553 contracts, up 25,732, or 11.2%, from 228,821 a week earlier. It was their largest long position since May 24 when it was 267,491 contracts.
Meanwhile, commercial traders had a total net short position Tuesday of 477,169 contracts, up 22,224, or 4.88%, from 454,945 a week earlier. It was their largest short position since June 28 when it was 537,593 contracts.
The CFTC said managed money arrived at their new corn position by adding 30,863 long positions, 5,131 short positions and 872 spread positions. This left them holding 20.8% of total long open interest, 2.7% of total short open interest and 10.0% of total spread open interest.
Commercials got to where they were by adding 12,545 long positions and 34,769 short positions, leaving them with 26.6% of total long open interest and 60.5% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $144.00 to $148.91 per cwt, compared with the previous week’ range of $143.00 to $147.00. FOB dressed steers, and heifers went for $225.42 to $2 per cwt, versus $224.47 to $229.75.
The USDA choice cutout Friday was up $0.45 per cwt at $246.98 while select was up $1.08 at $216.94. The choice/select spread narrowed to $30.04 from $30.67 with 78 loads of fabricated product and 26 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $2.00 to $2.15 a bushel over the Dec futures and for southwest Kansas were steady at $1.00 over Dec, which settled at $6.89 3/4, down 8.
No live cattle contracts were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $174.11 per cwt up $0.08. This compares with Friday’s Oct contract settlement of $173.80, down $0.95.