Large commodity index funds, known as managed money, took on a larger collective net long position in live cattle futures during the week ended last Tuesday, Oct. 19, as hedgers expanded their cumulative net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS GET LONGER CATTLE
The collective net long live cattle position of managed money last Tuesday totaled 40,850 contracts, up 8,991, or 28.2%, from 31,859 a week earlier. It was the second straight week of expanding net long positions by managed money.
The collective total net short position of commercial traders, those who own, or will own, the cattle at some point and approach the market primarily as hedgers, last Tuesday was 124,628 contracts, up 4,212, or 3.50%, from 120,416 a week earlier. It also was their second straight week of an expanded net position.
The CFTC said managed money arrived at their new net long cattle position by adding 4,471 long positions, covering 4,520 short positions and unwinding 1,941 spread positions. This left them with 26.5% of total long open interest, 11.8% of total short open interest and 8.9% of total spread open interest.
Commercial traders reached their new net short position by liquidating 5,851 long positions and covering 1,639 short positions, leaving them with 10.4% of total long open interest and 55.4% of total short open interest.
The CME Group said total live cattle open interest last Tuesday was 282,605 contracts, up 356, or 0.13%, from 282,249 a week earlier.
The CME Group also said the most-active Dec contract moved up during the CFTC reporting week to settle at $130.02 per cwt, compared with $129.25.
FUNDS GET SHORTER CORN
For the second straight week, managed money last Tuesday took on a smaller net long position in Chicago corn futures, moving to 211,654 contracts, down 6,585, or 3.02%, from 218,239 a week earlier.
Also for the second straight week, commercials took on a smaller net short position in corn futures, moving to 460,174 contracts from 465,483 a week earlier. It was a decline of 5,309, or 11.4%.
The CFTC said managed money arrived at their new corn position by liquidating 10,464 long positions, covering 3,879 short positions and putting on 4,645 spread positions. This left them with 18.7% of total long open interest, 3.7% of total short open interest and 8.5% of total spread open interest.
Commercials added 8,172 long positions and 2,863 short positions, leaving them with 29.0% of total long open interest and 61.8% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $125.38 to $125.84 per cwt, compared with last week’s range of $123.44 to $125.75. FOB dressed steers and heifers went for $196.33 to $196.72 per cwt, versus $193.78 to $196.35.
The USDA choice cutout Monday was up $1.22 per cwt at $283.04, while select was up $0.08 at $263.19. The choice/select spread widened to $19.85 from $18.71 with 92 loads of fabricated product and 44 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 up $0.05 at $1.20 to $1.32 a bushel over the Dec futures and for southwest Kansas were unchanged at $0.40 over Dec, which settled at $5.38 a bushel, unchanged.
No live cattle contracts were tendered for delivery against Oct Monday.
The CME Feeder Cattle Index for the seven days ended Friday was $155.89 per cwt up $0.48. This compares with Monday’s Oct contract settlement of $155.62 per cwt, up $0.20 and the Nov settlement of $158.47, up $1.57.