Managed money, a proxy for large commodity investment firms, extended their collective net long live cattle futures position in the week ended last Tuesday, Nov. 24, as hedgers nudged their collective net short position higher.
The data came from the Commodity Futures Trading Commission’s Commitments of Traders report, which came out a day late on Monday because of last week’s Thanksgiving Day holiday.
FUNDS BUY CATTLE
The new net long position for managed money as of Tuesday stood at 37,422 contracts, up 2,033, or 5.74%, from 35,389 a week earlier. It was their largest net long position since Oct. 13 when it was long by 54,322 contracts.
At the same time, commercial traders, those hedgers, or cattle owners, extended their collective net short position to 104,870 contracts, up 445, or 0.43%, from 104,425 a week earlier. It was their largest net short position since Oct. 20 when it was short by 109,500 contracts.
The CFTC said managed money arrived at their new net long cattle position by adding 2,472 long positions, 439 short positions and unwinding 2,575 spread positions. This left them in charge of 22.9% of total long open interest, 9.3% of total short open interest and 11.9% of total spread open interest.
Commercials got to where they were last Tuesday by adding 1,360 long positions and 1,805 short positions, leaving them holding 14.9% of total long open interest and 52.9% of total short open interest.
The CME Group said total live cattle open interest as of last Tuesday was 275,800 contracts, up 1,158, or 0.42%, from 274,642 a week earlier.
CME Group data also showed that the most-active Feb contract rose during the CFTC week to settle last Tuesday at $113.95 per cwt, compared with $113.57 a week earlier. However, in between, the contract hit a swing low of $109.00 per cwt on Friday.
FUNDS TRIM CORN POSITION
Meanwhile, managed money trimmed their collective net long Chicago corn futures position to 266,560 contracts in the week ended Tuesday, down 1,550, or 0.58%, from 268,110 a week earlier. It was their first decline in 15 straight weeks.
Commercials, though, extended their net short position to 674,980 contracts, up 57,660, or 9.34%, from 617,320 a week earlier. It was their largest net short position in more than a year.
The CFTC said managed money arrived at their new long corn position by adding 2,351 long positions, 3,901 short positions and 5,425 spread positions. This left them with 19.4% of total long open interest, 3.9% of total short open interest and 9.4% of total spread open interest.
Commercials liquidated 81,371 long positions and 23,711 shorts.
CATTLE, BEEF RECAP
Fed cattle trading last week was seen at $110 to $111 per cwt on a live basis, steady to up $1 from the previous week. Dressed-basis trading was reported at $171 to $174 per cwt, down $1 to up $2.
The USDA choice cutout Monday was up $0.83 per cwt at $243.68, while select was up $1.75 at $222.43. The choice/select spread narrowed to $21.25 from $22.17 with 65 loads of fabricated product and 19 loads of trimmings and grinds sold into the spot market.
The USDA reported Monday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.05 to $1.12 a bushel over the Dec CBOT futures contract, which settled at $4.19 3/4 a bushel, down $0.05 3/4.
The CME Feeder Cattle Index for the seven days ended Friday was $138.90 per cwt, up $1.35. This compares with Monday’s Jan contract settlement of $141.05 per cwt, up $1.22.