After a one-week break lower, large commodity investment funds, or managed money, have increased their collective net long live cattle futures position and their largest in five months.
The Commodity Futures Trading Commission’s weekly Commitments of Traders report showed managed money had a net long position of 62,059 contracts as of Tuesday, up 7,118, or 13.0%, from 54,941 the week before. This was their largest net long position since March 20, when it was 71,832 contracts.
At the same time, commercial traders, primarily hedgers and those who theoretically could make or take delivery of a futures contract, had a collective net short position as of Tuesday of 138,546 contracts, up 1,979, or 1.45%, from 136,567 the week before. This was their largest net short position since April 3 when it was 139,372 contracts.
The CFTC said managed money arrived at its new net long live cattle position by adding 4,321 long positions, covering 2,797 short positions and unwinding 1,403 spread positions. This left them representing 28.3% of total long open interest, 7.5% of total short open interest and 9.9% of total spread open interest.
Commercial traders got to where they were by liquidating 93 long positions and adding 1,886 short positions, leaving them in control of 11.5% of total long open interest and 58.0% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday was 298,309 contracts, down 2,637, or 0.88%, from 300,946 the previous Tuesday.
CME Group data also showed that the most-active Oct cattle contract moved higher during the CFTC week to settle Tuesday at $110.47 per cwt, up $1.75, or 1.61%, from $108.72 the previous Tuesday. During the week, it set a cycle high of $111.07 per cwt on Monday.
FUNDS CUT SHORT CORN POSITION
Meanwhile, managed money extended its run on cutting its total net short corn position for the fourth straight week, going to a position of being short 49,896 contracts, down 10,243, or 17.0%, from 60,139 the previous Tuesday.
Commercials tentatively extended their net short position to 267,838 contracts from 266,762 the previous week, a gain of 1,076, or 0.40%.
The CFTC said managed money arrived at its new net long cattle position by adding 1,088 long positions, covering 9,155 short positions and unwinding 156,637 spread positions. This left them representing 14.6% of total long open interest 17.5% of total short open interest and 9.8% of total spread open interest.
Commercial traders reached their new net short cattle position by adding 2,112 long positions and 3,188 short positions, leaving them in charge of 29.3% of total long open interest and 45.0% of total short open interest.
Total open interest fell to 1.714 million contracts from 1.717 million.
CATTLE, BEEF RECAP
280 head of fed cattle traded Wednesday on the Livestock Exchange Video Auction at $109.50 per cwt, down from the last sale at $110.07 three weeks earlier.
Cash cattle traded last week at $109 to $109.50 per cwt on a live basis, steady to down $1 from the previous week. Dressed business was done at $172 per cwt, down $1 to $2.
The USDA choice cutout Friday was not available. The USDA choice cutout Thursday was up $0.33 per cwt at $214.37, while select was up $0.02 at $203.99. The choice/select spread widened to $10.38 from $10.07 with 76 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $150.85 per cwt, up $0.21. This compares with Friday’s Aug settlement of $149.20, up $0.17 and the Sep settlement of $147.47, down $1.67.