Large commodity investment firms, known as managed money, reversed course and expanded their collective net long live cattle position during the week ended Tuesday as hedgers extended their collective net short position.
The data came from the Commodity Futures Trading Commission’s Commitments of Traders report Friday.
FUNDS PUSH LONG CATTLE POSITION
By Tuesday, managed money had a collective net long live cattle futures position of 39,812 contracts, up 3,480, or 9.58%, from 36,332 a week earlier. This was their largest net long position since Oct. 13 when it was 54,322 contracts.
By contrast, those hedgers, known as commercial traders, had a collective net short cattle position Tuesday of 113,225 contracts, up 3,864, or 3.53%, from 109,361 a week earlier. It was their largest net short position since Oct. 13 when it was 125,489 contracts.
The CFTC said managed money arrived at their new net long cattle position by adding 3,950 long positions, 470 short positions and 2,448 spread positions. This left them with 23.8% of total long open interest, 9.8% of total short open interest and 12.2% of total spread open interest.
Commercials got to their new net short cattle position by liquidating 3,021 long positions and adding 843 short positions, leaving them in charge of 13.8% of total long open interest and 53.4% of total short open interest.
The CME Group said total live cattle open interest Tuesday stood at 285,434 contracts, up 5,052, or 1.80%, from 280,382 a week earlier.
CME data also showed that the most-active Feb live cattle contract price moved higher during the week to settle at $112.87 per cwt, compared with $110.77.
FUNDS CUT LONG CORN POSITION
During the same week, managed money cut their collective net long Chicago corn futures position to 228,307 contracts, down from 247,595 a week earlier. It was their smallest net long position since Oct. 20 when it was 211,575 contracts.
Commercials cut their collective net short corn position during the week to 647,302 contracts, down 11,530, or 1.75%, from 658,832 a week earlier. It was their smallest net short position since Nov. 17 when it was 617,320 contracts.
The CFTC said managed money arrived at their new net long cattle position by liquidating 11,279 long positions, adding 8,009 short positions and putting on 2,597 spread positions. This left them holding 18.9% of total long open interest, 5.3% of total short open interest and 9.2% of total spread open interest.
Commercials added 13,279 long positions and 1,749 short positions, leaving them with 24.9% of total long open interest and 63.6% of total short open interest.
CATTLE, BEEF RECAP
Fed cattle trade was reported in the Plains last week at $105 to $108 per cwt on a live basis, steady to down $1 from the previous week. Dressed-basis trading was at $165 to $166, down $3 to $4.
The USDA choice cutout Friday was down $0.88 per cwt at $208.63, while select was up $0.57 at $194.27. The choice/select spread narrowed to $14.36 from $15.81 with 95 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were up $0.11 to $0.16 at $1.21 a bushel over the Mar CBOT futures contract, which settled at $4.37 1/2 a bushel, up $0.05.
Ten steer contracts were retendered for delivery against the Dec contract Friday at one. All were demanded.
The CME Feeder Cattle Index for the seven days ended Thursday was $138.48 per cwt, up $1.29. This compares with Friday’s Jan contract settlement of $140.45 per cwt, down $0.52.