Funds Hold Longest Live Cattle Position In 7 Months

Large commodity investment funds, called managed money, had their largest net long live cattle futures position since the week ended April 25 as of Tuesday after adding to their position for the ninth week.

Commodity Futures Trading Commission data Monday showed that for the week ended Tuesday, managed money had a net long live cattle position of 131,685 contracts, up 10,800, or 8.93%, from 120,885 the previous week and the largest since April 25th’s 133,180.

Commercial traders, those who own cattle at some point and primarily are hedgers, extended their net short position during the week to 210,144 contracts, up 12,131, or 6.13%, from 198,013 the previous week.  It was their largest net short position since the week ended June 13 when it was 212,032 contracts.

The CFTC said managed money arrived at its new net long live cattle position by adding 11,654 long positions, 854 new short positions and 6,869 new spread positions.  This left them with 37.1% of total long open interest, 2.7% of total short open interest and 8.9% of total spread open interest.

Commercials got to where they were by liquidating 194 long positions and adding 11,937 short positions to leave them in control of 6.5% of total long open interest and 61.4% of total short open interest.

The CME Group said total live cattle open interest during the CFTC week rose to 382,760 contracts from 354,616 the previous week, a gain of 28,144, or 7.94%.

During the latest CFTC reporting week, the most-active Dec futures contract rose to a contract high of $127.87 per cwt on Thursday before dropping back again.  It settled on Tuesday at $124.62, compared with the previous Tuesday’s close of $125.62.

 

FUNDS EXTEND SHORT CORN POSITION

 

For the sixth straight week, managed money extended its short CBOT corn position and now holds the shortest position since the week ended May 9.  The new net short position is 202,456 contracts, up 3,321, or 1.67%, from 199,135 the previous week and the shortest since the May 9 total of 203,976.

Commercial traders also extended their net short corn futures position during the week to 144,417 contracts from 132,250, a gain of 12,167, or 9.20%.  It was the first week of extending their net short position after five weeks of declines.

The CFTC said managed money arrived at its new short corn position by adding 7,752 long positions, 11,073 short positions and 13,747 spread positions.  This left them representing 12.5% of total long open interest, 25.0% of total short open interest and 8.2% of total spread open interest.

Commercial traders got to where they were by adding 1,052 long positions and 13,219 short positions, leaving them in control of 26.9% of total long open interest and 35.8% of total short open interest.

 

CATTLE, BEEF RECAP

 

About 465 head of fed cattle sold on the Livestock Exchange video auction Wednesday at $124 per cwt, up $4 from a week earlier.

Light trade was reported Tuesday in the Plains at $124 per cwt on a live basis, steady to $1 lower than the bulk of last week’s action.  More trading was reported Wednesday at $123 to mostly $124 and at $191 to $194 on a dressed basis, down $1 to up $3 from the previous week.

The USDA’s choice cutout Monday was down $1.04 per cwt at $212.81, while select was off $0.68 at $193.83.  The choice/select spread narrowed to $18.98 from $19.34 with 73 loads of fabricated product sold into the spot market.

The CME Feeder Cattle index for the seven days ended Friday was $160.01 per cwt, up $0.63.  This compares with Monday’s Nov settlement of $158.70, up $0.22.