As the Commodity Futures Trading Commission continues to catch up with delayed Commitments of Traders reports, the latest data show large commodity investment funds, or managed money, again adding to their collective net long live cattle position during the week ended Jan. 15.
Managed money’s new cattle position was 98,061 contracts, up 3,665, or 3.88%, from 94,396 the week before. This was their largest net long position since Feb. 27, 2018, when it was 102,549 contracts.
At the same time, commercial traders, those who own the cattle and primarily are hedgers, increased their net short cattle position to 172,294 contracts from 169,634 the previous week. This was a gain of 2,660 contracts, or 1.57%, and was their largest net short position since March 13, 2018, when it was 178,986.
The CFTC said managed money arrived at its new cattle position by adding 5,131 long positions, 1,466 short positions and 609 spread positions. This left them in control of 29.4% of total long open interest, 4.1% of total short open interest and 14.4% of total spread open interest.
Commercials got to their new position by adding 2,451 long positions and 5,111 short positions, leaving them with 11.4% of total long open interest and 55.8% of total short open interest.
The CME Group said total live cattle open interest for Jan. 15 was 386,858 contracts, up 3,076, or 0.80%, from 383,782 the week before.
The CME Group also reported that the most-active Apr live cattle contract rose during the CFTC week to settle at $127.42 per cwt from $126.15 a week earlier.
FUNDS SLASH CORN POSITION
During the same CFTC reporting week, managed money slashed its net long corn futures position to 15,694 contracts from 70,160 the previous week, a drop of 54,466, or 77.6%.
Commercial traders responded by slashing their net short corn position to 283,257 contracts from 342,501 the previous week for a decline of 59,244, or 17.3%.
The CFTC said managed money arrived at its new net long corn futures position by liquidating 26,153 long positions, adding 28,313 short positions and putting on 7,145 new spread positions. This left them representing 14.5% of total long open interest, 13.5% of total short open interest and 14.1% of total spread open interest.
Commercials reached their new position by adding 28,703 long positions and covering 30,541 short positions, leaving them with 27.1% of total long open interest and 44.3% of total short open interest.
Total open interest for the week ended Jan. 15 was 1.638 million contracts, versus 1.623 million the week before.
CATTLE, BEEF RECAP
No fed cattle sold Wednesday on the Fed Cattle Video Exchange, compared with 161 a week earlier at $124 to $124.50 per cwt.
A few trades were reported in eastern Nebraska and western Iowa at $198 to $200 per cwt on a dressed basis, steady to up $1 from the bulk of last week’s trade. Live-basis cattle sold last week at $124 to $125 per cwt, steady to up $1 from the previous week.
The USDA choice cutout Wednesday was down $0.72 per cwt at $216.44, while select was down $0.99 at $212.01. The choice/select spread widened to $4.43 from $4.16 with 89 loads of fabricated product sold into the spot market.
There were five heifer and 10 steer contracts tendered for delivery Wednesday. There also were 40 heifer contracts retendered for delivery at 1 and 15 heifer contracts reclaimed at 1.
The CME Feeder Cattle index for the seven days ended Tuesday, was $141.79 per cwt, down $0.05. This compares with Wednesday’s Mar contract settlement of $143.52, down $0.87.