Funds Extend Long Live Cattle Position

Large commodity investment funds, known as managed money, extended their collective net long live cattle position to another record high during the week ended last Tuesday.  It was their 18th week of larger net long positions in 19 weeks.

The data came in the weekly Commitments of Traders report from the Commodities Futures Trading Commission, released Friday.

The data show the net long position of managed money stood at 148,000 contracts, up from 144,452 the previous Tuesday, for a gain of 3,548, or 2.46%.

At the same time, commercial traders, those who own the cattle and theoretically could make or take delivery of a futures contract, extended their collective net short position for the 19th straight week to 216,706 contracts.  This was a gain of 6,499, or 3.09%, from their net short position of 210,207 contracts the previous Tuesday.

The CFTC said managed money arrived at its new net long live cattle position by adding 6,088 long positions, 2,540 short positions and unwinding 3,049 spread positions.  This left their position representing 37.0% of total long open interest, 4.1% of total short open interest and 12.7% of total spread open interest.

Commercial traders got to their new position by adding 1,977 long positions and 8,476 short positions, leaving them in control of 7.8% of total long open interest and 56.0% of total short open interest.

The CME Group said total live cattle open interest last Tuesday was marked at 450,431 contracts, up 5,960, or 1.34%, from 444,471 a week earlier.

CME Group data also showed at the most-active Jun live cattle futures contract had a net loss during the CFTC reporting week to settle last Tuesday at $120.72 per cwt, down from $122.72 a week earlier.  However, in between it set a new contract high of $124.90 per cwt on Friday.

 

FUNDS GET LESS SHORT CORN

 

During the same week, managed money made a significant cut to its net short position in CBOT corn futures.  Their new net short corn position last Tuesday stood at 218,427 contracts, down 64,418, or 22.8%, from 282,845 a week before.

Commercial traders, meanwhile, extended their net short corn position to 119,325 contracts from 75,800 a week earlier, a gain of 43,525, or 57.4%.

The CFTC said managed money arrived at its new corn position by liquidating 441 long positions, covering 64,859 contracts and putting on 3,124 spread positions.  This left their new position representing 10.8% of total long open interest, 22.9% of total short open interest and 15.5% of total spread open interest.

Commercials got to their new short corn position by liquidating 1,249 long positions and adding 42,276 short positions.  This left them in control of 28.4% of total long open interest and 34.9% of total short open interest.

Total corn open interest came to 1.810 million contracts, nearly flat with a week earlier.

 

CATTLE, BEEF RECAP

 

The USDA reports cash cattle sales last week at $125 to $126 per cwt on a live basis, down $2 to $4 from the previous week.  Dressed-basis sales were slim at $206 to $208, steady to up $1.

The USDA choice cutout Monday was up $0.80 per cwt at $226.84, while select was up $0.44 at $219.33.  The choice/select spread widened to $7.51 from $7.15 with 60 loads of fabricated product sold into the spot market.

There were no steer and eight heifer delivery tenders against the Apr live cattle contract.

The CME Feeder Cattle index for the seven days ended Friday, was $142.42 per cwt, up $0.68.  This compares with Monday’s Apr contract settlement of $145.45, up $0.20.