Large commodity investment funds, called managed money, extended their net long live cattle futures position to its largest position in nearly a month, according to the Commodity Futures Trading Commission.
The data came in the CFTC’s weekly Commitments of Traders report Friday and included trading for the week ended Tuesday.
FUNDS GO LONG CATTLE
The CFTC data said managed money’s collective net long position Tuesday stood at 85,392 contracts, up 6,180, or 7.80%, from 79,212 the week before. This was their largest net long position since Dec. 24 when it was 86,458 contracts.
Meanwhile, commercial traders, those who own the cattle and primarily are hedgers, extended their collective net short position to its largest point since May 14 when it was 87,039 contracts. Their new live cattle futures position was short by a net 162,463 contracts, up 3,654, or 2.30%, from 158,809 the previous week.
The CFTC said managed money arrived at its new cattle position by adding 2,607 long positions, covering 3,573 short positions and putting on 2,537 spread positions. This left their position representing 28.9% of total long open interest, 7.6% of total short open interest and 16.0% of total spread open interest.
Commercials got to where they were by adding 1,533 long positions and 5,187 short positions, leaving them holding 11.4% of total long open interest and 52.0% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 400,431 contracts, up from 394,499 the week before. This was a gain of 5,932, or 1.50%.
CME group data also showed that the most-active Apr live cattle contract declined during the CFTC week to settle Tuesday at $127.22 per cwt, down from $127.87. However, the contract dropped sharply on Thursday to $126.77 per cwt, followed by a low Friday of $123.35 before closing at $124.30.
FUNDS BUYING CORN
Managed money continued to buy Chicago corn futures during the week ended Tuesday, trimming their collective net short position to 65,890 contracts, down 13,250, or 16.7%, from 79,140 a week earlier. It was their lowest net short position since Oct. 15 when it was short by 64,749 contracts.
Commercial traders extended their net short position to 280,451 contracts, a gain of 9,292, or 3.43%, from 271,159 the previous Tuesday. It was their largest net short position since Aug. 20 when it was short by 328,329 contracts.
The CFTC said managed money arrived at its new short corn position by adding 5,423 long positions, covering 7,827 short positions and unwinding 11,402 spread positions. This left them holding 11.7% of total long open interest, 16.8% of total short open interest and 15.9% of total short open interest.
Commercial traders got to their new short corn position by liquidating 12,475 long positions and covering 3,183 short positions, leaving them in control of 25.4% of total long open interest and 43.7% of total short open interest.
CATTLE, BEEF RECAP
Cash cattle trading in the Plains last week was at $123 to $127 per cwt, down $1 to up $2.50 from the previous week. Dressed-basis trading was at $198 to $199.50 per cwt, steady to up $0.50.
The USDA choice cutout Friday was down $0.83 per cwt at $214.49, while select was off $0.50 at $210.70. The choice/select spread narrowed to $3.79 from $4.12 with 79 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday was $144.84 per cwt, down $0.02. This compares with Friday’s Jan contract settlement of $141.85, down $0.92 and the Mar close of $139.67, down $0.85.