Managed money, a proxy for large commodity index investment funds, took on a larger collective net long live cattle futures position in the week ended last Tuesday, Oct. 8, while hedgers added to their total net short position.
That information came from the weekly Commitments of Traders report Friday by the Commodity Futures Trading Commission.
FUNDS BUY CATTLE AGGRESSIVELY
Last Tuesday, managed money had a collective net long live cattle position of 77,964 contracts, up 10,076, or 14.8%, from 67,888 a week earlier. It was their largest net long position since July 30 when it was 79,393 contracts.
Hedgers, or commercial traders, last Tuesday had a total net short live cattle position of 110,845 contracts, up 10,322, or 10.3%, from 100,523 a week earlier. It was their largest net short position since March 19 when it was 113,672 contracts.
The CFTC said managed money arrived at their new live cattle position by adding 8,684 long positions, covering 1,392 short positions and unwinding 5,284 spread positions. This left them with 29.8% of total long open interest, 5.4% of total short open interest and 14.3% of total spread open interest.
Commercials came to their new position by liquidating 6,064 long positions and adding 4,259 short positions, leaving them holding 12.0% of total long open interest and 46.8% of total short open interest.
The CFTC said total live cattle open interest last Tuesday was 318,751 contracts, down from 325,515 a week earlier.
CME Group data showed that the most-active Dec contract rose in value during the CFTC-reporting week to settle at $187.87 per cwt, versus $195.17 a week earlier.
FUNDS ALSO BUY CORN AGGRESSIVELY
Last Tuesday, managed money had a collective net short corn position of 34,854 contracts, down 37,231, or 51.6%, from 72,085 a week earlier, their smallest net short position in more than a year.
Commercials had a total net short corn position of 226,501 contracts, up 35,707, or 18.7%, from 190,794 a week earlier, their largest net short position in more than a year.
The CFTC said managed money arrived at their new corn position by liquidating 3,561 long positions, covering 40,792 short positions and putting on 694 new spread positions. This left them holding 13.8% of total long open interest, 16.1% of total short open interest and 16.8% of total spread open interest.
Commercials got to where they were by adding 9,586 long positions and 45,293 short positions, leaving them holding 25.1% of total long open interest and 40.2% of total short open interest.
Total open interest was 1.495 million contracts, up from 1.484 million.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $187.52 per cwt to $187.94, compared with last week’s range of $185.99 to $188.49 per cwt. FOB dressed steers, and heifers went for $293.29 per cwt to $295.02, compared with $290.85 to $297.16.
The USDA choice cutout Monday was up $2.10 per cwt at $313.32 while select was up $0.38 at $289.10. The choice/select spread widened to $24.22 from $22.50 with 75 loads of fabricated product and 12 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $354.17 per cwt, and 50% beef was $68.90.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.31 to $1.48 a bushel over the Dec corn contract, which settled at $4.08 1/4 a bushel, down $0.07 1/2.
Ten steer contracts were retendered Tuesday against the Oct live cattle contract.
The CME Feeder Cattle Index for the seven days ended Friday was $250.61 per cwt, up $0.56. This compares with Monday’s Oct contract settlement of $249.12, down $0.62.