Large commodity investment funds, known as managed money, expanded their collective net long live cattle futures positions during the week ended Tuesday, Feb. 19, according to data from the Commodity Futures Trading Commission.
The information came in the Commitments of Traders report Friday. The report was delayed by the partial government shutdown, and the CFTC has been releasing two reports a week since returning to work in an effort to catch up.
Managed money’s new net long cattle position was 115,452 contracts, up 4,729, or 4.27%, from 110,723 the previous week. It was their 13th straight gain in their cattle futures position.
At the same time, commercial traders, those who own the cattle and use futures primarily as a hedging tool, extended their net short cattle futures position by 2,371 contracts, or 1.28%, to 187,730 contracts from 185,359 the previous week. It also was their 13th week of gains in net position.
For managed money and commercials, their new position was the largest in more than a year.
The CFTC said managed money arrived at its new cattle position by adding 3,722 long positions, covering 1,007 short positions and putting on 863 new spread positions. This left them representing 33.3% of total long open interest, 3,8% of total short open interest and 14.6% of total spread open interest.
Commercials got to their new cattle position by liquidating 3,309 long positions and covering 938 short positions, leaving them in control of 7.1% of total long open interest and 55.0% of total short open interest.
The CME Group said total live cattle open interest on Feb. 19 was 392,414 contracts, up from 389,101 the previous week for a gain of 3,313, or 0.85%.
The most-active Apr cattle contract rose during the CFTC week to settle at $128.45 per cwt from $127.62, but set a swing low of $126.67 on Thursday, Feb. 14.
FUND SELL CORN AGGRESSIVELY
At the same time, managed money sold corn futures aggressively, expanding their collective net short position to 103,659 contracts from 32,825 the previous week, a gain of 70,834, or 215.8%. It was their largest net short position since Sep. 25 when it was 124,855 contracts.
Commercials’ new net short position was 180,601 contracts, down 51,525, or 22.2%, from 232,126 the previous week. It was their smallest net short position since Sep. 18 when it was 164,774 contracts.
The CFTC said managed money arrived at its new corn position by liquidating 11,880 long positions, adding 58,954 short positions and unwinding 10,292 spread positions. This left them in control of 11.5% of total long open interest, 17.3% of total short open interest and 13.9% of total spread open interest.
Commercials got to their new position by adding 32,724 long positions and covering 18,801 short positions, leaving them with 30.0% of total long open interest and 40.1% of total short open interest.
Total open interest went up to 1.787 million contracts from 1.750 million.
CATTLE, BEEF RECAP
Cash cattle trading took place last week at $128 per cwt on a live basis, up $1.50 to $2 from the previous week, and at $205 dressed, up $3.
The USDA choice cutout Friday was up $1.34 per cwt at $221.29, while select was up $1.52 at $216.79. The choice/select spread narrowed to $4.50 from $4.68 with 48 loads of fabricated product sold into the spot market.
There were no heifer delivery tenders and eight steer tenders for delivery Friday.
The CME Feeder Cattle index for the seven days ended Thursday, was $139.23 per cwt, down $0.71. This compares with Friday’s Mar contract settlement of $141.22, down $1.65.