Large commodity investment firms, called managed money, kept buying live cattle futures during the week ended Tuesday, extending their collective net long position for the fifth straight week.
The Commodity Futures Trading Commission, in its weekly Commitments of Traders report Friday provided the data that said managed money’s new net long live cattle futures position was at 56,272 contracts as of Tuesday. This was up 12,448 contracts, or 28.4%, from 43,824 the previous Tuesday and their largest net long position since Jan. 28 when it stood at 67,128 contracts.
During the same CFTC reporting week, commercial traders, those who own the cattle at some point and theoretically could make or take delivery of a futures contract, continued to sell. They extended their collective net short cattle position to 136,495 contracts, up 8,608, or 6.73%, from 127,887 the previous Tuesday, and their largest net short position since Feb. 11 when it was 139,183.
The CFTC said managed money arrived at their new net long position by adding 9,212 long positions, covering 3,236 short positions and unwinding 2,924 spread positions. This left their net position in control of 25.8% of total long open interest, 6.5% of total short open interest and 12.7% of total spread open interest.
Managed money, meanwhile, got to their new net short cattle position by liquidating 4,246 long positions and adding 4,362 short positions, leaving them holding 8.1% of total long open interest and 55.0% of total short open interest.
The CME Group said total live cattle open interest on Tuesday was 291,072 contracts, up 2,966, or 1.03%, from 288,106 a week earlier.
CME Group data also showed that the most-active Oct live cattle contract rose during the CFTC reporting week to settle at $109.87 per cwt, compared with $108.30 the previous Tuesday.
FUNDS BUY CORN; STILL NET SHORT
During the week ended Tuesday, managed money bought corn aggressively yet continued to hold a net short position.
Managed money’s new position Tuesday was short by 128,111 contracts, down 64,676, or 33.5%, from 192,787 a week earlier. It was their smallest net short position since April 7 when it was 110,220 contracts.
Meanwhile, commercial traders sold corn aggressively, expanding their net short position to 90,798 contracts, up 64,391, or 243.8%, from 26,407 a week earlier. It was their largest net short position since April 14 when it was 107,798 contracts.
The CFTC said managed money arrived at their new short corn position by adding 9,563 long positions, covering 55,113 short positions and unwinding 2,506 spread positions. This left them with 12.1% of total long open interest, 20.5% of total short open interest and 12.0% of total spread open interest.
Commercials got to where they were by liquidating 60,521 long positions and adding 3,870 short positions, leaving them in charge of 32.3% of total long open interest and 38.3% of total short open interest.
CATTLE, BEEF RECAP
Fed cattle trading was reported in the Plains last week at $106 to $109 per cwt on a live basis, up $3 from the previous week. Dressed-basis trade was steady to up $4 at $168 to $172.
The USDA choice cutout Friday was up $0.56 per cwt at $225.94, while select was up $2.68 at $208.99. The choice/select spread narrowed to $16.95 from $19.07 with 45 loads of fabricated product sold into the spot market.
No steer or heifer contracts were tendered for delivery Friday against the Aug live cattle futures contract.
The CME Feeder Cattle Index for the seven days ended Thursday was at $143.90 per cwt, up $1.10. This compares with Friday’s Aug contract settlement of $142.92 per cwt, down $0.50.