Commodity investment funds, or managed money, expanded their net long live cattle futures position during the week ended Tuesday for the third straight week, signaling a slightly more bullish outlook.
The Commodity Futures Trading Commission said in its weekly Commitments Of Traders report Friday that during that week, managed money had raised their net long live cattle position by 4,446 contracts, or 23.2%, to 23,632 from 19,186.
During the same week, commercial traders, those who theoretically could make or take delivery of a futures contract, raised their collective net short position to 61,844 contracts, a gain of 5,705, or 10.2%, from 56,139.
The CFTC said managed money reached their new live cattle position by adding 659 long positions and covering 3,787 shorts while unwinding 2,042 spreads. This left them representing 25.7% of total long open interest and 16.0% of total short open interest.
Commercials, arrived at their new net short position by cutting 3,981 long positions and adding 1,504 shorts, leaving them in control of 15.4% of total long open interest and 40.7% of total short open interest.
Total live cattle open interest during the week declined to 244,317 contracts from 251,084, a drop of 6,767, or 2.70%, according to the CME Group’s Web site.
During the latest reporting week, the most active Oct futures contract rebounded from the previous Tuesday’s swing low of $107.90 per cwt and attempted a rally. The effort reached its zenith on Thursday at $112.50 and then fell to close Tuesday at $109.47.
MANAGED MONEY EXPANDS SHORT CORN POSITION
During the same CFTC week, managed money expanded its net short corn position by 23,872, contracts, or 405.6%, to 29,758 from 5,886, the CFTC said. It was the fifth straight week of declines and takes them to their lowest short position since the week ended April 12 when it was 146,384.
At the same time, commercials trimmed their net short corn position by 16,924 contracts, or 5.40%, to 296,447 from 313,371, the CFTC said. It was the fifth straight week of declining short positions and brought commercials to their lowest net short position since the week ended April 19 when it was 290,005.
Managed money arrived at its new corn position by liquidating 4,622 long positions and adding 19,250 shorts while adding 14,672 spreads. This left them representing 12.6% of total long open interest and 14.9% of total short open interest.
Commercials got to their new net short position by liquidating 11,215 long positions and covering 28,139 shorts to leave them in control of 24.7% of total long open interest and 47.6% of total short open interest.
Total corn open interest rose slightly during the week to 1.298 million contracts from 1.298 million the previous week, for a gain of 484, or 0.04%.
During the week, the most-active Dec contract fell to a new contract low and then tried to rally. Tuesday’s close of $3.60 ¼ a bushel was only slightly above the previous Tuesday’s settlement of $3.58.
CASH CATTLE TRADE QUIET
Cash cattle markets last week traded $2 per cwt lower at $115 on a live basis. In dressed markets, prices were $2 to $4 lower at mostly $185 with some in Iowa at $184.
The USDA’s choice cutout Friday was $0.61 per cwt lower at $200.09, while select was off $0.25 at $189.57. The choice/select spread narrowed to $10.52 from $10.88 with 97 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $139.22 per cwt, down $1.01. This compares with the Aug settlement Friday of $137.20, up $2.80.