Large commodity index funds, known as managed money, expanded their collective net long live cattle futures position for the sixth straight week as of last Tuesday, Nov. 5.
In it’s weekly Commitments of Traders report Friday, the Commodity Futures Trading Commission also provided data to show that hedgers trimmed their total net short position after five straight weeks of expansion.
FUNDS BUY CATTLE
Tuesday, managed money had a collective net long live cattle position of 101,453 contracts, up 937, or 0.93%, from 100,516 a week earlier and their largest net long position since Sep. 26, 2023, when it was 103,763 contracts.
At the same time, hedgers, called commercial traders, had a total net short live cattle position of 122,065 contracts, down 2,882, or 2.31%, from 124,947 a week earlier.
The CFTC said managed money arrived at their new cattle position by adding six long positions, covering 931 short positions and putting on 502 new spread positions. This left them holding 32.4% of total long open interest, 4.0% of total short open interest and 15.4% of total spread open interest.
Commercials reached their new cattle position by adding 3,034 long positions and 152 short positions, leaving them in possession of 11.8% of total long open interest and 46.0% of total short open interest.
The CFTC also said total live cattle open interest last Tuesday was 357,246 contracts, up 4,905, or 1.39%, from 352,341 a week earlier.
CME data showed the most-active Dec contract declined in the CFTC-reporting week to settle at $184.77 per cwt, versus $187.95 a week earlier.
FUNDS ALSO BUY CORN
Meanwhile, managed money had a collective net long corn position last Tuesday of 3,035 contracts, up from being short by 35,508 a week earlier. It was their first net long position since Aug. 1, 2023, when it was long by 12,675 contracts.
Commercials last Tuesday had a total net short corn position of 298,276 contracts, up 26,234, or 9.64%, from 272,042 a week earlier and their largest short position since June 20, 2023, when it was minus 296,892 contracts.
The CFTC said managed money arrived at their new position by adding 26,070 long positions, covering 12,473 short positions and putting on 9,982 new spread positions. This left them with 16.2% of total long open interest, 16.0% of total short open interest and 12.9% of total spread open interest.
Commercials reached their new position by liquidating 17,176 long positions and adding 9,058 short positions, leaving them with 26.9% of total long open interest and 44.8% of total short open interest.
Total corn open interest Tuesday was 1.674 million contracts, down from 1.683 million a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $187.72 per cwt to $188.39, compared with week’s range of $187.12 to $197.20 per cwt. FOB dressed steers, and heifers went for $297.89 per cwt to $298.15, compared with $297.87 to $302.65.
The USDA choice cutout Monday was up $0.28 per cwt at $308.21 while select was up $2.65 at $281.84. The choice/select spread narrowed to $26.37 from $28.74 with 104 loads of fabricated product and 22 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $340.56 per cwt, and 50% beef was $78.19.
The USDA said basis bids for corn from feeders in the Southern Plains were up $0.04 to down $0.01 at $1.44 to $1.55 a bushel over the Dec corn contract and unchanged in Kansas at $0.25 over Dec, which settled at $4.30 a bushel, down $0.01.
The CME Feeder Cattle Index for the seven days ended Friday was $249.83 per cwt, down $0.03. This compares with Monday’s Nov contract settlement of $246.15, up $0.72.