Large commodity investment funds, known collectively as managed money, nudged their net long live cattle futures position higher for the fourth straight week in the week ended Tuesday.
The action was revealed in the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
The CFTC said managed money’s new net long live cattle position as of Tuesday totaled 29,646 contracts, up 3,251, or 12.3%, from 26,395 the week before and up 8,735, or 41.8%, from the most recent low of 20,911 contracts as of July 2.
During the most recent CFTC reporting week, commercial traders, those who own cattle and theoretically could make or take delivery of a futures contract, extended their collective net short live cattle position, advancing to 122,349 contracts from 121,872 the week before, a gain of 477, or 0.39%. This compares with their most recent net short low of 120,915 contracts set July 9.
The CFTC said managed money arrived at its new live cattle position by adding 1,579 long positions, covering 1,672 short positions and putting on 4,882 spread positions. This left them in charge of 19.9% of total long open interest, 10.6% of total short open interest and 16.7% of total spread open interest.
Commercials, meanwhile, got to their new short cattle position by liquidating 562 long positions and covering 85 short positions, leaving them with 11.7% of total long open interest and 49.9% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday was 320,915 contracts, down 2,611, or 0.81%, from 323,526 a week earlier.
CME Group data also showed that the most active Oct live cattle delivery month made a rounded short-term top during the week ended Tuesday. It settled Tuesday at $109.07 per cwt, down from $109.87 a week earlier. In between, it topped at $110.55 on Thursday and at $110.60 on Monday.
FUNDS SLASH LONG CORN POSITION
Meanwhile, managed money cut its net long Chicago corn position to 105,907 contracts from 143,540 the week before, a decline of 37,633, or 26.2%. It was their lowest long corn position since June 4 when it was 95,262 contracts.
The new net short position for commercial traders was 480,197 contracts, down 36,889, or 7.13%, from 517,086 the previous Tuesday. It was their lowest net short position since June 18 when it was 447,647 contracts.
The CFTC said managed money arrived at their new long corn position by liquidating 20,512 long positions, added 17,121 short positions and put on 1,263 new spread positions. This left them holding 13.5% of total long open interest, 7.5% of total short open interest and 14.0% of total spread open interest.
Commercials got to their new short corn position by adding 6,014 long positions and covering 30,875 short positions, leaving them with 26.2% of total long open interest and 53.1% of total short open interest.
CATTLE, BEEF RECAP
Cash cattle traded in the Plains last week at $111 per cwt on a live basis, down $1 from the previous week, and at $114 to $116 in Nebraska, steady to down $1. Dressed-basis trading occurred at $183 to $185 per cwt, steady to up $2.
The USDA choice cutout Friday was up $0.49 per cwt at $214.73, while select was up $1.29 at $190.63. The choice/select spread narrowed to $24.10 from $24.90 with 76 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday was $141.74 per cwt, down $0.49 from the previous day. This compares with Friday’s Aug contract settlement of $139.62, down $1.60.