During the week ended Tuesday, Jan. 13, large commodity index funds, known as managed money, took on a larger net long live cattle futures position while cash traders advanced their net short position.
That was the upshot of data from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS GET LONGER CATTLE
Last Tuesday, managed money had a collective net long live cattle futures position of 100,338 contracts, up 6,611, or 7.05%, from 93,727 a week earlier. It was their largest net long position since Nov. 10 when it was 101,177 contracts.
At the same time, cash cattle traders, called commercial traders, had a total net short live cattle position of 131,724 contracts, up 5,979, or 4.75%, from 125,745 a week earlier. It was their largest net short position since Oct. 21 when it was 133,662 contracts.
Last Tuesday, managed money held 116,265 long live cattle positions, or 35.8% of total open interest, for an increase of 2,597 contracts from a week earlier. They also held 15,927 short positions, or 4.9% of total open interest for a decrease of 4,014, and they held 32,429 spread positions, or 10.0% of total open interest, for a decline of 7,556.
Commercial traders held 41,866 long positions, or 12.9% of total open interest, for a decline of 1,679 from a week earlier. They also held 173,590 short positions, or 53.5% of total open interest, for a weekly increase of 4,300.
Total open interest at the CME last Tuesday was 324,599 contracts, down 6,421, or 1.94%, from 331,020 a week earlier.
The Apr contract last Tuesday closed at $238.97 per cwt, up from $237.37 a week earlier.
FUNDS SELL CORN
Last Tuesday, managed money had a collective net short corn futures position of 90,658 contracts, up 77,828, or 606.6%, from 12,830 a week earlier.
Commercials, then, had a total net short corn position of 198,776 contracts, down 79,015, or 28.4%, from 277,791 a week earlier.
Last Tuesday, managed money held 202,570 long corn positions, or 12.6% of total open interest, for a decline of 22,449 from a week earlier. They also held 293,228 short positions, or 18.2% of total open interest, for a gain of 55,379, and they held 222,495 spread positions, or 18.2% of total open interest, for a decline of 3,746.
Commercials held 469,047 long positions, or 28.7% of total open interest, for a gain of 65,856 contracts, and they held 661,823 short positions, or 41.0% of total open interest, for a loss of 13,159 contracts.
Total corn open interest at the CME was 1.613 million contracts, up 75,834, or 4.93%, from 1.537 million a week earlier.
The Mar contract fell during the CFTC-reporting week to settle at $1.19 ¾ a bushel from $4.44 a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $231.21 per cwt to $235.55, compared with the previous week’s range of $228.00 to $236.00 per cwt. FOB dressed steers and heifers went for $362.33 per cwt to $366.74, compared with $359.10 to $363.90.
The USDA choice cutout Friday was up $1.61 per cwt at $362.38 while select was up $0.48 at $360.19. The choice/select spread widened to $2.19 from $1.06 with 67 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $412.21 per cwt, and 50% beef was $154.44.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $0.95 to $1.10 a bushel over the Mar corn contract, which settled at $4.24 3/4, up $0.04 1/2.
The CME Feeder Cattle Index for the seven days ended Thursday was $370.15 per cwt, up $0.73. This compares with Friday’s Jan contract settlement of $361.92, down $6.50.