After two weeks of declines in their collective net long live cattle futures position, large commodity index funds, known as managed money, stepped up and increased their position in the week ended Tuesday.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday in which it also said commercial traders had increased their total net short cattle position.
FUNDS BUILD LONG CATTLE POSITION
As of Tuesday, the collective net long live cattle position of managed money was 12,232 contracts, up 3,115, or 34.2%, from 9,117 a week earlier.
Commercials, those who own, or will own, the cattle and theoretically could make or take delivery of a futures contract, had a total net short position Tuesday of 81,953 contracts, up 462, or 0.57%, from 81,491 a week earlier.
The CFTC said managed money arrived at their new live cattle position by liquidating 2,627 long positions, covering 5,742 short positions and unwinding 3,286 spread positions. This left them with 24.3% of total long open interest, 19.8% of total short open interest and 8.9% of total spread open interest.
Commercials got to where they were Tuesday by adding 178 long positions and 640 short positions, leaving them in charge of 16.6% of total long open interest and 46.9% of total short open interest.
The CME Group said live cattle open interest Tuesday totaled 270,361 contracts, down 9,752, or 3.48%, from 280,113 a week earlier.
CME Group data also showed that the most-active Oct live cattle contract rose in value during the CFTC reporting week to settle at $141.25 per cwt, compared with $138.47 a week earlier.
FUNDS CUT LONG CORN POSITION
Meanwhile, managed money cut their collective net long Chicago corn futures position with a total Tuesday of 128,524 contracts, down 29,452, or 18.6%, from 157,976 a week earlier.
Commercials Tuesday had a total net short position of 451,695 contracts, down 20,406, or 4.32%, from 472,101 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 22,316 long positions, adding 7,136 short positions and putting on 2,656 spread positions. This left them holding 16.0% of total long open interest, 6.4% of total short open interest and 10.3% of total spread open interest.
Commercials got to where they were by adding 12,540 long positions and covering 7,866 short positions, leaving them with 25.4% of total long open interest and 59.3% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.333 million contracts, up 2,164, or 1.62%, from 1.331 million a week earlier.
Most-active Dec rose to $5.86 ½ a bushel from $5.78 ½.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $136.51 to $149.83 per cwt, compared with the previous week’s range of $138.00 to $148.92. FOB dressed steers, and heifers went for $217.59 to $223.85 per cwt, versus $217.96 to $226.88.
The USDA choice cutout Friday was up $1.18 per cwt at $268.91, while select was down $0.12 at $241.79. The choice/select spread widened to $27.12 from $25.84 with 60 loads of fabricated product and 22 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were steady at $2.75 to $2.85 a bushel over the Sep futures and for southwest Kansas were steady at $0.10 under Sep, which settled at $6.04 1/4, down $0.00 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $172.62 per cwt down $1.43. This compares with Friday’s Aug contract settlement of $176.35, down $2.55.