Funds’ Net Long Live Cattle Positions Hit Two-Month High

During the week ended Tuesday, commodity investment funds, or managed money, increased its net long live cattle futures position to its highest level since the week ended Aug 23 when it was 40,932 contracts.

The Commodity Futures Trading Commission’s weekly Commitments of Traders report, Friday said managed money’s net long live cattle position as of Tuesday was 39,150 contracts, up 4,388, or 12.6%, from 34,762 the previous week.

During the same week, commercial traders, those who handle the cattle and theoretically could make or take delivery of a futures contract, increased their net short live cattle positions to 69,489 contracts, the largest net short position for these traders since the week ended Aug. 23 when it was 75,958 contracts.

The CFTC said managed money arrived at its new net long position by liquidating 140 long positions and covering 4,528 shorts while adding 949 spread positions.  This left them representing 27.3% of long positions and 13.0% of total short positions.

Commercials got to their new net short position by adding 175 long positions and 3,802 short positions leaving them in control of 15.6% of total long open interest and 41.0% of total short open interest.

The CME Group said total live cattle open interest during the CFTC reporting week rose slightly to 273,786 contracts from 273,711.  This was a gain of only 75 contracts, or 0.03%.

During the latest CFTC week, the most-active Feb contract rose to close at $106.52 per cwt from $104.05 the previous week, a gain of $2.47, or 2.37%.




Managed money reversed direction during the week ended Tuesday and went short corn.  Their new net short corn position was 74,300 contracts, up 60,822, or 451.3%, from 13,478 the previous week, their largest since the week ended Oct. 11 when it was 121,914.

Commercial traders, meanwhile, reduced their net short corn positions by 56,157, or 17.3%, to 269,044 contracts from 325,201, the CFTC said.

Managed money arrived at its new corn position by liquidating 33,568 long positions and adding 27,254 short positions and 8,472 spreads.  This left them representing 12.9% of total long open interest and 18.2% of total short open interest.

Commercials got to their new net short corn position by adding 51,626 long positions and covering 45,531 shorts to leave them in control of 25.3% of total long open interest and 44.5% of total short open interest.

Total open interest during the week rose 51,572 contracts, or 3.83%, to 1.399 million from 1,347 million, the CME Group said.

During the CFTC reporting week, the most-active Dec corn contract declined to close at $3.41 ½ a bushel from $3.54 ¼, the CME Group said, a dip of $0.12 ¾, or 3.60%.




Only a little cash cattle cleanup action was reported in cattle markets Friday after being very active with higher prices Wednesday.

Cattle sold last week from $107.50 per cwt on a live basis to $110, mostly $108, up about $3, and at $168 to mostly $170 dressed, up $10 to $12.

Wednesday, cattle sold in the online Superior Auction at $105.50 to $108.25 in the south to $103.25 to $108.25 in the north.

The USDA’s choice cutout Friday was $0.64 per cwt higher at $182.95, while select was off $0.09 at $167.01.  The choice/select spread widened to $15.94 from $15.21 with 94 loads of fabricated product sold into the spot market.

The CME Feeder Cattle Index for the seven days ended Thursday was $127.00 per cwt, up $0.56.  This compares with Friday’s Jan settlement at $124.97, up $0.05.