Large commodity investment funds, known in the trade as managed money, expanded their net long live cattle futures position during the week ended Tuesday but remain within striking distance of having an even position, according to data from the Commodity Futures Trading Commission’s weekly Commitments of Traders report on Friday.
Managed money’s collective new cattle position was net long by 18,570 contracts, up 10,895, or 142.0%, from 7,675 a week earlier. It was the fifth week since their position bottomed at a net short position of 10,478 contracts. It was their largest net long position since Aug. 6 when it was 22,258 contracts.
At the same time, commercial traders, those who own cattle and theoretically could make or take delivery of a futures contract, expanded their collective net short position to 98,873 contracts, up 6,204, or 6.69%, from 92,669 a week before. It was their largest net short position since Sep. 3 when it was 106,775 contracts.
The CFTC said managed money arrived at its new net long position by adding 4,320 long positions, covering 6,575 short positions and unwinding 3,151 spread positions. This left them representing 20.9% of total long open interest, 14.7% of total short open interest and 15.2% of total spread open interest.
Commercials reached their new net short position by liquidating 3,921 long positions and adding 2,283 short positions, leaving their position in control of 15.3% of total long open interest and 48.2% of total short open interest.
The CME Group said total live cattle open interest declined during the CFTC reporting week to 300,352 contracts, down 3,511, or 1.16%, from 303,863 the previous Tuesday.
CME Group data also showed that the most-active Dec live cattle contract rose during the CFTC week to settle Tuesday at $113.45 per cwt from $110.85, a gain of $2.60, or 2.35%.
FUNDS, COMMERCIALS CUT SHORT CORN POSITIONS
Meanwhile, managed money and commercial traders, which usually trade in opposite directions, but their net short corn positions during the CFTC reporting week.
Managed money Tuesday was net short by 64,749 contracts, down 32,110, or 33.2%, from 96,859 the week before. It was their smallest net short corn position since Aug. 13 when they were net long by 21,527 contracts.
Commercials’ new corn position was net short by 210,665 contracts, compared with 225,869, a decline of 15,204, or 6.73%.
The CFTC said managed money arrived at its new corn position by liquidating 13,912 long positions, covering 46,022 short positions and putting on 4,648 new spread positions. This left them holding 9.9% of total long open interest, 14.1% of total short open interest and 13.6% of total spread open interest.
Commercials got to where they were by liquidating 14,708 long positions and covering 29,912 short positions, leaving their position representing 30.8% of total long open interest and 44.2% of total short open interest.
The CME Group said total corn open interest was 1.573 million contracts, down from 1.622 million.
CATTLE, BEEF RECAP
Cash cattle changed hands last week at $108 to $109 per cwt, steady with the previous week, while dressed-basis trading was at $173 to $175, up $1 to $3.
The USDA choice cutout Friday was down $0.07 per cwt at $218.04, while select was up $0.44 at $193.04. The choice/select spread narrowed to $25.00 from $25.51 with 67 loads of fabricated product sold into the spot market.
Ten steer contracts were posted Friday for delivery against the Oct contract.
The CME Feeder Cattle index for the seven days ended Thursday was $145.60 per cwt, up $0.45 from the previous day. This compares with Friday’s Oct contract settlement of $143.50, down $0.70.