Managed money, the term for large commodity investment funds, lifted their collective net long live cattle futures position during the week ended Tuesday, Jan. 28, according to data from the Commodity Futures Trading Commission.
The CFTC data came in the form of its Commitments of Traders report for that week, which was delayed by the partial government shutdown. The agency has been releasing two COT reports a week since the shutdown’s end to catch up.
Managed money’s new live cattle position is to be long by 102,332 contracts, up 3,432, or 3.47%, from 98,900 the previous week. It also was the 11th straight increase in managed money’s position in live cattle and the highest in at least a year.
During the same CFTC reporting week, commercial traders, those who own the cattle and theoretically could make or take delivery of a futures contract, increased their collective net short position to 173,040 contracts from 172,851 the previous week. It was their largest net short position since March 13, 2018, when it was 178,986 contracts and their 11th straight increase in their net short position.
The CFTC said managed money arrived at its new long cattle position by adding 3,323 long positions, covering 109 short positions and unwinding 3,459 spread positions. This left them representing 30.9% of total long open interest, 4.5% of total short open interest and 13.2% of total spread open interest.
Commercials got to where they were by liquidating 3,136 long positions and covering 2,947 short positions, leaving them in control of 10.5% of total long open interest and 55.1% of total short open interest.
CME Group data show total live cattle open interest on Jan. 28 at 388,295 contracts, down 1,198, or 0.31%, from 389,493 the week before.
CME Group data also show that the most-active Apr live cattle futures contract rose during the CFTC report week to settle Jan. 28 at $127.80 per cwt, up from $126.07 a week earlier.
FUNDS GO SHORT CORN
During the latest CFTC reporting week, managed money continued to sell corn futures, winding up on Jan. 28 being net short by 9,832 contracts. This contrasts with their net long position of 33,319 contracts the week before.
Meanwhile, commercial traders reduced their net short corn position to 275,018 contracts from 304,565 the week before, a decline of 29,547, or 9.70%.
Managed money achieved its new corn position by liquidating 29,206 long positions, adding 13,945 short positions and putting on 8,580 new spread positions. This left them representing 12.1% of total long open interest, 12.7% of total short open interest and 15.9% of total spread open interest.
Commercials reached their new corn position by adding 17,637 long positions and covering 11,910 short positions, leaving them with 27.1% of total long open interest and 43.4% of short open interest.
CATTLE, BEEF RECAP
No fed cattle sold last Wednesday on the Fed Cattle Video Exchange, compared with 161 a week earlier at $124 to $124.50 per cwt.
Cash cattle trading last week took place at mostly $125 up to $126 per cwt, up $1 from the previous week. On a dressed basis, cattle traded from $198 to mostly $199 to $200, steady to up $2.
The USDA choice cutout Tuesday was down $0.12 per cwt at $217.27, while select was up $0.54 at $213.54. The choice/select spread narrowed to $3.73 from $5.86 with 121 loads of fabricated product sold into the spot market.
There were no heifer and 15 steer delivery notices Tuesday.
The CME Feeder Cattle index for the seven days ended Friday, was $141.50 per cwt, up $0.19. This compares with Tuesday’s Mar contract settlement of $143.75, up $1.15.