During the week ended Tuesday, Oct. 14, large commodity funds, known as managed money, had increased their collective net long live cattle futures position as cattle owners, or commercial traders boosted their total net short position.
The data came from the Commodity Futures Trading Commission’s Commitments of Traders report as the organization catches up on the weekly reports that were delayed by the government shutdown.
FUNDS BUY CATTLE
As of Oct. 14, managed money had a collective net long live cattle position of 120,224 contracts, up 6,625, or 54.83%, from 113,599 a week earlier.
At the same time, commercial traders had a total net short position of 136,387 contracts, up 8,966, or 7.04%, from 127,421 a week earlier. It was their largest net short position since June 10 when it was 139,589 contracts.
The CFTC said managed money, on Oct. 14 held 147,208 long live cattle positions, or 1.2% of total open interest, for a gain of 949 contracts from a week earlier. They also held 26,984 short positions, or 7.4% of total open interest, for a decline of 2,180; and, they held 39,632 spread positions, or 10.8% of total open interest for a decline of 166.
Meanwhile, commercials held 46,412 long live cattle positions, or 12.7% of total open interest for a decline of 4,123 contracts from a week earlier. They also held 182,799 short positions, or 49.9% of total open interest, for a gain of 4,843.
Open interest at the CME on Oct. 14 totaled 366,119 contracts, down 577, or 0.16%, from 366,696 a week earlier.
The Feb live cattle contract rose during the CFTC-reporting week to settle at $248.52 per cwt, compared with $240.72 a week earlier.
FUNDS INCREASE SHORT CORN POSITION
On Oct. 14, managed money had a collective net short corn position of 187,992 contracts, up 53,380, or 39.7%, from 134,612 a week earlier. It was their shortest corn position since July 1 when it was 189,540 contracts.
Meanwhile, commercials had a total net short corn position of 80,427 contracts, down 29,330, or 26.7%, from 109,757 a week earlier.
On that Tuesday, managed money held 162,573 long corn positions, or 9.8% of total open interest, for a decline of 9,449 contracts. They also held 350,565 short positions, or 21.2% of total open interest, for a gain of 43,931 contracts; and, they held 244,864 spread positions, or 14.8% of total open interest, for a gain of 7,925.
Commercials then held 487,376 long positions, or 29.4% of total open interest, for a gain of 18,277 contracts. They also held 567,803 short positions, or 34.3% of total open interest, for a decline of 11,053.
Total open interest at the CME on Oct. 14 was 1.656 million contracts, up from 1.596 million a week earlier.
The Mar contract declined during the CFTC-reporting week to settle at $4.29 ¼ a bushel, compared with $4.36 ¼ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $221.00 per cwt to $225.59, compared with last week’s range of $225.92 to $232.00 per cwt. FOB dressed steers and heifers went for $351.99 per cwt to $356.79, compared with $353.46 to $362.66.
The USDA choice cutout Tuesday was down $0.40 per cwt at $370.09 while select was up $0.42 at $355.93. The choice/select spread narrowed to $14.16 from $14.98 with 198 loads of fabricated product and 17 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $401.63 per cwt, and 50% beef was $171.46.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.05 to $1.20 a bushel over the Dec corn contract, which settled at $4.23 1/2, down $0.00 1/4.
The CME Feeder Cattle Index for the seven days ended Monday was $331.97 per cwt, down $4.41. This compares with Tuesday’s Jan contract settlement of $307.07, up $2.10.