During the week ended Tuesday, Oct. 21, large commodity index funds, better known as managed money, nudged their collective net long live cattle futures position upward, compared with the previous week.
In releasing the data, the Commodity Futures Trading Commission said in its delated Commitments of Traders report that cattle owners, also called commercial traders, trimmed their total net short live cattle futures position.
The CFTC is catching up on its weekly Commitments of Traders reports that were delayed by the government shutdown.
FUNDS TAKE LONGER CATTLE POSITION
As of Tuesday, Oct. 21, managed money had a net long live cattle position of 121,472 contracts, up 1,248, or 1.04%, from 120,224 a week earlier.
At the same time, commercial traders had a net short live cattle position of 133,662 contracts, down 2,725, or 2.00%, from 136,387 a week earlier.
On that date, managed money held 146,979 long cattle positions, or 40.5% of total open interest, down 229 contracts from a week earlier. They also held 25,979 short positions, or 7.0% of total open interest, for a decline of 1,477, and they held 40,523 spread positions, or 11.2% of total open interest, for a gain of 891.
Commercials, then, held 45,665 long cattle positions, or 12.6% of total open interest, for a decline of 747 contracts from a week earlier. They also held 179,327 short positions, or 49.5% of total open interest, for a decline of 3,472.
CFTC data also showed that total live cattle open interest on Oct. 21 was 362,687 contracts, down 3,432, or 0.94%, from 366,119 a week earlier.
During that CFTC-reporting week, the most-active Feb live cattle contract dropped in value, settling at $246.27 per cwt, compared with $248.52 a week earlier. It set a contract high of $249.55 on Thursday of that reporting week.
FUNDS CUT SHORT CORN POSITION
On Oct. 21, managed money had a collective net short corn position of 159,272 contracts, down 28,720, or 13.3%, from 187,992 a week earlier.
At the same time, commercial traders had a total net short corn position of 121,632 contracts, up 41,205, or 51.2%, from 80,427 a week earlier.
At the time, managed money held 151,763 long corn positions, or 9.2% of total open interest, for a loss of 10,810 contracts. They also held 151,763 short positions, or 18.9% of total open interest, for a decline of 39,530 contracts, and they held 249,830 spread positions, or 15.2% of total open interest, for a gain of 4,966.
Commercial held 473,649 long positions, or 28.8% of total open interest, for a loss of 13,727 contracts. They also held 595,281 short positions, or 36.2% of total open interest, for a gain of 27,478.
Total open interest at the CME was 1.644 million contracts, down from 1.656 million a week earlier.
And, the most-active Mar contract rose in value during the week to settle at $4.33 ¾ a bushel, compared with $4.29 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 $218.52 per cwt to $224.00, compared with last week’s range of $216.36 to $228.00 per cwt. FOB dressed steers and heifers went for $338.10 per cwt to $349.49, compared with $345.25 to $356.88.
The USDA choice cutout Thursday was down $1.09 per cwt at $362.72 while select was off $2.80 at $350.32. The choice/select spread widened to $12.40 from $10.69 with 141 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 $396.47 per cwt, and 50% beef was $168.71.
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 $4.37 3/4, up $0.06 1/4.
The CME Feeder Cattle Index for the seven days ended Wednesday was $341.80 per cwt, up $4.02. This compares with Thursday’s Jan contract settlement of $336.57, up $4.72.