Large commodity investment firms, called managed money, increased their collective net long live cattle futures position in the week ended Thursday as cattle owners raised their net short position.
The information came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS LONGER LIVE CATTLE
Managed money’s new long live cattle position amounted to 35,389 contracts, up 9,669, or 37.6%, from 25,720 a week earlier. It was their third straight week of pushing their net long position and took them to their largest long position since Oct 13 when it was 54,322 contracts long.
In the same week, hedgers, commonly known as commercial traders, advanced their collective net short position to 104,425 contracts, up 5,693, or 5.77%, from 98,732 a week earlier. It was their largest net short position since Oct. 20 when it was 109,500.
The CFTC report said managed money arrived at their new net long live cattle position by adding 3,807 long positions, covering 5,862 short positions and putting on 1,425 spread positions. This left their total position representing 22.1% of total long open interest, 9.2% of total short open interest and 12.8% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 793 long positions and adding 4,900 short positions, leaving them holding 14.5% of total long open interest and 52.5% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 274,642 contracts, up 1,705, or 0.62%, from 272,937 a week earlier.
CME Group data showed that the most-active Feb cattle contract declined during the CFTC reporting week to settle Tuesday at $113.57 per cwt, down from $115.10. The contract fell sharply late last week to settle at $110.65 on Friday.
FUNDS TRIM NET LONG CORN POSITION
Meanwhile, managed money trimmed their collective net long Chicago corn position to 268,110 contracts, down 715, or 0.27%, from 268,825 a week earlier.
Commercial traders’ new net short corn position also moved little during the CFTC week, ending Tuesday at 617,320 contracts, up 5,375, or 0.88%, from 611,945 the previous Tuesday.
The CFTC said managed money arrived at its new long corn position by liquidating 1,347 long positions, covering 632 short positions and unwinding 1,784 spread positions. This left them in charge of 18.6% of total long open interest, 3.5% of total short open interest and 8.7% of total spread open interest.
Commercials got to their new corn position by adding 2,532 long positions and 7,907 short positions, leaving them with 28.4% of total long open interest and 63.0% of total short open interest.
Total open interest Tuesday was 1.783 million, versus 1.760 million a week earlier.
CATTLE, BEEF RECAP
Fed cattle trading last week was seen at $109 to $111 per cwt, mostly $110, on a live basis, down $1 to up $1 from the previous week. Dressed-basis trading was done at a steady $172.
The USDA choice cutout Friday was up $0.65 per cwt at $238.35, while select was up $1.09 at $214.98. The choice/select spread narrowed to $23.37 from $23.81 with 68 loads of fabricated product and 37 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were down $0.03 to $0.05 a bushel at $1.05 to $1.12 over the Dec CBOT futures contract, which settled at $4.23 1/4 a bushel, down $0.00 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $136.75 per cwt, down $0.76. This compares with Friday’s Jan contract settlement of $134.60 per cwt, down $0.95.