Large commodity index funds, known as managed money, expanded their collective net long live cattle futures position during the week ended last Tuesday, Feb. 24, as cash cattle traders enlarged their total net short position.
The data dame from the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
FUNDS TAKE LONGER CATTLE POSITION
Last Tuesday, managed money had a collective net long live cattle futures position of 116,963 contracts, up 1,911, or 1.66%, from 115,052 a week earlier. It was their largest net long position since Oct. 21 when it was 121,472 contracts.
Meanwhile, cattle traders, called commercial traders, had a total net short live cattle position of 139,589 contracts, up 1,642, or 1.19%, from 137,947 a week earlier. It was their largest net short position since June 10 when it also was 139,589 contracts.
Last Tuesday, managed money held 132,406 long positions, or 38.8% of total open interest, for a gain of 1,964 contracts. They also held 15,443 short positions, or 4.5% of total open interest, for a gain of 53, and they held 43,458 spread positions, or 12.7% of total open interest, for a gain of 5,370.
At the same time, commercial traders held 30,943 long live cattle positions, or 9.1% of total open interest, for a loss of 5,475 contracts, and they held 170,532 short positions or 49.9% of total open interest, for a decline of 3,833.
Total open interest at the CME last Tuesday was 341,685 contracts, up 11,557, or 3.50%, from 330,128 a week earlier.
During the CFTC-reporting week, the May live cattle contract fell to settle at $239.10 per cwt, compared with $242.80 a week earlier.
FUNDS COVER CORN SHORTS
Last Tuesday, managed money had a collective net short Chicago corn position of 13,234 contracts, down 29,079, or 68.7%, from 42,313 a week earlier and their smallest net short position since Jan. 6 when it was 12,830 contracts.
At the same time, commercial traders had a total net short position of 286,685 contracts, up 40,864, or 16.6%, from 245,821 a week earlier for their large net short position since Dec. 9 when it was 292,813 contracts.
At that time, managed money held 219,988 long positions, or 13.3% of total open interest, for a gain of 10,085 contracts. They also held 233,222 short positions, or 14.1% of total open interest, for a loss of 18,994, and they held 249,144 spread positions, or 15.0% of total open interest, for a loss of 14.254 contracts.
Commercials held 436,218 long corn positions, or 26.3% of total open interest for a loss of 59,850 contracts. I
They also held 722,903 short positions, or 43.7% of total open interest, for a loss of 18,986 contracts.
Total corn open interest at the CBOT last Tuesday was 1.656 million contracts, down 124,000, or 6.97%, from 1.780 million a week earlier.
The May corn contract rose during the CFTC-reporting week to settle at $4.38 ½ a bushel, compared with $4/35 ¾.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $244.74 per cwt to $244.99, compared with last week’s range of $247.79 to $251.69 per cwt. FOB dressed steers and heifers went for $387.33 per cwt to $388.21, compared with $387.65 to $391.91.
The USDA choice cutout Monday was up $1.50 per cwt at $381.34 while select was up $3.90 at $378.21. The choice/select spread narrowed to $3.13 from $5.53 with 58 loads of fabricated product and 15 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $427.58 per cwt, and 50% beef was $164.85.
The USDA said basis bids for corn from feeders in the Southern Plains were $0.90 to $1.05 a bushel over the May corn contract, which settled at $4.46, up $0.00 1/4.
The CME Feeder Cattle Index for the seven days ended Friday was $371.82 per cwt, down $0.97. This compares with Monday’s Mar contract settlement of $357.27, up $1.85.